America again gave a blow to India, withdrew the exemption given on Iran’s Chabahar port, said – will impose sanctions
US imposes sanctions on Chabahar Port
The US has withdrawn the 2018 sanctions waiver that allowed the development of Iran’s Chabahar port. Now, starting September 29th, the US Treasury will impose sanctions on individuals operating the Chabahar port. Consequently, any individual or company operating the Chabahar port will be subject to US sanctions. This is being described as a major setback for India. India has invested billions of rupees in developing the Chabahar port. Therefore, US sanctions not only threaten to sink investments but also hamper India’s strategic preparations. Previously, the US has inflicted economic damage on India by imposing a 50% tariff.
US imposes sanctions on Chabahar Port
The US State Department issued a statement stating, “Consistent with President Trump’s maximum pressure policy to isolate the Iranian regime, the Secretary of State has revoked the sanctions waiver issued in 2018 under the Iran Freedom and Counter-Proliferation Act (IFCA) for Afghanistan reconstruction assistance and economic development, effective September 29, 2025. After this sanction comes into effect, individuals operating the Chabahar Port or engaging in other activities described in the IFCA may be subject to sanctions under the IFCA.”
Why is Chabahar Port Important for India?
Chabahar Port is located on the Gulf of Oman coast in southeastern Iran and is Iran’s only deepwater maritime port. It serves as a vital gateway for trade between India, Iran, Afghanistan, and Central Asian countries. India is developing this port as part of the International North-South Transport Corridor (INSTC), a transit project connecting Russia and Europe through Central Asia. Chabahar Port is located close to Pakistan’s Gwadar Port, making it strategically important for India.
Who Operates Chabahar Port?
India has the rights to operate Chabahar Port, and its operations are overseen by India Ports Global Private Limited. India has begun construction of a railway line between Chabahar and Zahedan, which is part of the INSTC. This port is also an important conduit for India to deliver humanitarian aid to countries like Afghanistan. India has provided significant financial support for the port’s development and has linked it to a free economic zone.
US Increases Pressure on Iran
The Trump administration has long been trying to bring Iran to the negotiating table for a nuclear deal. As part of this effort, US sanctions on Iran are being increased. On Tuesday, the US stated, “Today, the United States is identifying an international illicit financial network, including numerous individuals and entities based in Hong Kong and the United Arab Emirates, to counter Iran’s destabilizing activities. These networks have facilitated the sale of Iranian oil, the proceeds from which benefit Iran’s Islamic Revolutionary Guard Corps Quds Force (IRGC-QF) and the Ministry of Defense and Armed Forces Logistics (MODAFL). These funds are used to purchase regional terrorist proxies and high-end weapons that pose a direct threat to the US military and our allies.”
