US Tightens Sanctions on Iran's Chabahar Port Impacting India's Trade Strategy
The US has revoked a 2018 sanctions waiver affecting Iran's Chabahar port, crucial for India's trade with Central Asia. India's long-term contract to manage the port may be affected as US's revocation aligns with its policy to isolate Iran. Chabahar is key for India's regional connectivity.
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- India
The United States government has decided to revoke the 2018 sanctions waiver concerning Iran's strategic Chabahar port. This decision has significant implications for India, which is developing a terminal at the port.
The US Department of State announced that consistent with President Trump's maximum pressure policy to isolate the Iranian regime, it is revoking the sanctions exception issued in 2018 under the Iran Freedom and Counter-Proliferation Act (IFCA) for Afghanistan reconstruction assistance and economic development. This revocation will take effect on September 29, 2025.
The revocation means that individuals or entities operating at Chabahar Port may face sanctions under IFCA. India is particularly affected as it signed a 10-year contract to operate Chabahar port in May 2024. The port is part of India's strategy to expand trade with Central Asia, bypassing Pakistan. The contract replaces an initial 2016 pact and marks India's first management of an overseas port. Despite US sanctions on Iran, Chabahar port has been used by India for humanitarian aid and trade diversifications.
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