HomeWorldUS revokes Chabahar Port waiver, sanctions apply from Sept 29: What it means for India | Explained

US revokes Chabahar Port waiver, sanctions apply from Sept 29: What it means for India | Explained

The end of the waiver exposes Indian entities to possible financial and legal penalties and creates new uncertainty for one of New Delhi’s most strategically important projects.

September 18, 2025 / 20:16 IST
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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)
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 United States has ended the special sanctions waiver for Iran’s Chabahar Port, which may place India’s flagship connectivity project under unprecedented strain. From September 29, 2025, anyone involved in operating, financing or servicing the port will face the same Treasury restrictions as other Iranian entities, according to a press note by the US Department of State.

"The United States remains committed to disrupting illicit funding streams financing Iran's malign activities. As long as Iran devotes its illicit revenues to funding attacks on the United States and our allies, supporting terrorism around the world, and pursuing other destabilizing actions, we will continue to use all the tools at our disposal to hold the regime accountable," the statement from the US State Department stated.

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“Consistent with President Trump’s maximum pressure policy to isolate the Iranian regime, the Secretary of State has revoked the sanctions exception issued in 2018 under the Iran Freedom and Counter-Proliferation Act (IFCA) for Afghanistan reconstruction assistance and economic development, effective September 29, 2025. Once the revocation is effective, persons who operate the Chabahar Port or engage in other activities described in IFCA may expose themselves to sanctions under IFCA,” the press note read further.

The order is part of US President Donald Trump’s February 2025 National Security Presidential Memorandum on “maximum economic pressure” against Tehran. The US has revoked the 2018 sanctions exception granted under the Iran Freedom and Counter-Proliferation Act (IFCA) for Afghanistan reconstruction assistance and economic development