The United States has revoked the sanctions waiver linked to Iran’s Chabahar Port, effective September 29, impacting India’s connectivity and trade plans in the region.

About the Chabahar Port

• Introduction: Chabahar Port is a strategic seaport jointly developed by India and Iran.
• Location: Situated in the Gulf of Oman, east of the Strait of Hormuz, in Iran’s Sistan-Baluchestan province.
• Significance for India:
  • Provides direct access to Afghanistan and Central Asia, bypassing Pakistan.
  • It is a crucial part of the International North–South Transport Corridor (INSTC).
  • Used for humanitarian aid deliveries, including wheat to Afghanistan and pesticides to Iran.

Timeline of Chabahar Port Development

• 2003: India and Iran sign an MoU to develop Chabahar Port.
• 2016: India, Iran, and Afghanistan sign a trilateral agreement for regional connectivity.
• 2018: India Ports Global Limited (IPGL) begins operating the Shahid Beheshti terminal; US grants waiver under IFCA citing Afghan reconstruction.
• 2019–2021: Port used for Indian humanitarian aid shipments to Afghanistan.
• 2024-2025: India signs a 10-year pact with Iran to operate Chabahar, committing $120M investment plus $250M in financing.
  • Ongoing expansion includes increasing port capacity to 500,000 TEUs and connecting it via a 700 km rail line to Zahedan.
• 2025 (Sept 29): Trump administration revokes Chabahar sanctions waiver, aligning with “maximum pressure” on Iran, putting India’s operations and strategic trade route at risk.

Implications of the Sanctions

• Affections Operation: It will directly impact India’s state-operated India Ports Global Limited (IPGL), which has managed the Shahid Beheshti terminal at the port since 2018.
• Impact on India’s Projects: Threatens India’s ongoing development of the terminal, railway connectivity, and planned expansion.
• Geopolitical Setback: Weakens India’s outreach to Afghanistan and Central Asia, undermining an alternative trade corridor bypassing Pakistan.
  • Chabahar functioned as a strategic counter to Chinese regional dominance, particularly in relation to the China-supported Gwadar Port in Pakistan.
    • These ports are positioned merely 170 kms apart.

Conclusion

• The revocation of the Chabahar waiver undermines India’s strategic connectivity goals, weakens regional outreach, and heightens dependence on volatile geopolitics, challenging its counterbalance to Pakistan and China’s influence.

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