US Revokes 2018 Sanction Waiver For India, Other Nations At Iran’s Chabahar Port

Last Updated:September 18, 2025, 21:47 IST

The US revoked the 2018 sanctions exception for Iran’s Chabahar Port, risking penalties for Indian operators and impacting India’s key regional connectivity project.

Located in the Sistan-Balochistan province on energy-rich Iran’s southern coast, the Chabahar port is being developed by India and Iran to boost connectivity and trade ties. (AP File)

The United States has revoked sanctions exception, issued in 2018, related to Iran’s Chabahar Port and issued fresh sanctions targeting the country’s financial networks.

In a statement, the US Treasury Department said: “…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.”

It further stated that people found to be operating the Chabahar Port or engaging in other activities described in IFCA may expose themselves to sanctions under IFCA.

According to a report by Times of India, the move risks exposing Indian operators at the port to US penalties and raises serious questions about the future of one of India’s most important regional connectivity projects.

Located in Sistan-Balochistan province on energy-rich Iran’s southern coast, Chabahar port is being developed by India and Iran to boost connectivity and trade ties.

The US had exempted the Chabahar port project from sanctions in 2018, saying “the secretary has provided for an exception from the imposition of certain sanctions under the Iran Freedom and Counter-Proliferation Act of 2012 (IFCA) with respect to the development of Chabahar Port and the construction of an associated railway and for the shipment of non-sanctionable goods through the port for Afghanistan’s use, as well as Afghanistan’s continued imports of Iranian petroleum products.”

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