NextFin news, On Friday, September 19, 2025, the United States Department of State declared it would revoke the sanctions waiver issued in 2018 under the Iran Freedom and Counter-Proliferation Act (IFCA) for activities related to Iran’s Chabahar Port. This revocation will take effect on Monday, September 29, 2025.
The waiver had previously allowed India and other nations to engage in development and operational activities at the Chabahar Port without facing US sanctions. The port, located in Iran’s Sistan-Balochistan province on the Gulf of Oman, is strategically important for India as a gateway to Afghanistan and Central Asia, bypassing Pakistan.
India signed a 10-year contract on May 13, 2024, to operate the Shahid Beheshti terminal at Chabahar Port, marking the first time India would manage an overseas port. The development of the port is part of India’s broader International North-South Transport Corridor (INSTC) project, aimed at enhancing trade connectivity between India, Iran, Afghanistan, Central Asia, and Europe.
The US State Department stated that the revocation aligns with the maximum pressure policy initiated under former President Donald Trump to isolate the Iranian regime. The department emphasized that individuals or entities operating the port or engaging in related activities after the waiver’s expiration may be subject to sanctions under IFCA.
According to the US government, the revocation is part of efforts to counter Iran’s destabilizing activities, including designating illicit financial networks facilitating Iranian oil sales that benefit the Islamic Revolutionary Guard Corps Qods Force (IRGC-QF) and the Ministry of Defense and Armed Forces Logistics (MODAFL).
India’s involvement in Chabahar Port dates back to 2003, with formal agreements signed in 2015 and 2016. The port has been used by India for humanitarian aid shipments, including 20,000 tonnes of wheat to Afghanistan in 2023 and environmentally friendly pesticides to Iran in 2021.
The Indian Ministry of External Affairs allocated Rs 100 crore for Chabahar Port development in the 2024-25 fiscal year, underscoring the strategic importance of the port for India’s regional connectivity and trade ambitions.
The US decision is expected to complicate India’s plans to expand its presence and operations at Chabahar, potentially affecting trade routes and regional cooperation initiatives. India has yet to publicly respond to the revocation announcement.
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