US allowed limited sanctions waiver for India’s Chabahar Project till April 2026: MEA amid Trump's tariff threat

A picture taken on February 25, 2019 shows workers resting at the Shahid Beheshti Port in the southeastern Iranian coastal city of Chabahar, on the Gulf of Oman. (Photo by ATTA KENARE / AFP)

The Ministry of External Affairs on Friday confirmed that it had received a letter from the US Department of the Treasury in October 2025 regarding a conditional sanctions waiver for India’s involvement in Iran’s Chabahar Port, valid until April 26, 2026. MEA spokesperson Randhir Jaiswal said India remains engaged with the US authorities to operationalise the arrangement.

"On 28 October 2025, the US Department of the Treasury issued a letter outlining the guidance on the conditional sanctions waiver, which is valid till 26th April, 2026. We remain engaged with the US side in working out this arrangement," Jaiswal said while addressing the weekly media briefing this evening.

#WATCH | Delhi | On the Chabahar port, MEA Spokesperson Randhir Jaiswal says, "... On 28 October 2025, the US Department of the Treasury issued a letter outlining the guidance on the conditional sanctions waiver, which is valid till 26th April, 2026. We remain engaged with the US… pic.twitter.com/gjzp38DXaK

— ANI (@ANI) January 16, 2026

The MEA's response came on reports that India’s role in developing the strategic port had effectively collapsed after US President Donald Trump said on January 12 that any country doing business with Iran would face a 25 per cent tariff on all trade with the United States. The renewed tariff threat comes amid the ongoing violent protests in Iran.

The United States reimposed sanctions on Iran’s Chabahar port on September 29, 2025. However, after India submitted details on how it planned to gradually wind down its activities at the port, including operations at the Shahid Beheshti terminal, Washington granted a temporary exemption.

The six-month waiver was issued by the US Office of Foreign Assets Control and took effect on October 29, 2025. It will remain valid until April 26 this year.

The Ministry of External Affairs said External Affairs Minister S Jaishankar also discussed the issue with Iran’s foreign minister, during which Tehran shared recent developments related to the Chabahar port.

The Chabahar Port, located in southeastern Iran, is one of the most strategically important maritime projects for India. It is India’s only direct access point to the Arabian Sea through Iran, bypassing Pakistan. The project aims to provide a shorter and more reliable trade route to Afghanistan and Central Asia, especially countries like Uzbekistan and Kazakhstan.

Under a 10-year agreement signed in 2024, India operates the Shahid Beheshti Terminal through IPGL, which oversees port operations, infrastructure development, and trade route promotion. The port is also being linked to the International North-South Transport Corridor (INSTC)—a major trade network connecting India, Iran, Russia, and Central Asia.

Jaiswal also said that New Delhi is closely watching the fast-developing situation in Iran and assured that it will take all necessary steps for the welfare of Indians. He stated that around 9,000 Indian nationals reside in Iran, which include students, people connected to business, professionals, pilgrims and seafarers.

"Given the situation there, we have issued a few advisories, asking Indian nationals to avoid all travel to Iran and Indian nationals who are already resident in Iran, to leave Iran by available means, including by commercial flights. We continue to closely watch the unfolding situation there and will take all necessary steps for the welfare of our people," said Jaiswal.

Protests in Iran were initially triggered by severe economic conditions, including record inflation and currency collapse, and have since spread across the country. Protesters are expressing dissent and calling for significant political and governance-related changes.

On January 5, India advised its nationals to avoid non-essential travel to Iran until further notice, owing to the recent developments in the country. Furthermore, it asked Indian nationals living in Iran on resident-visas to register with the Indian Embassy, if they had not done it already.