US revokes 2018 sanctions waiver for Chabahar project to reinforce Trump’s ‘maximum pressure on Iran’

In a move aligned with President Donald Trump’s “maximum pressure” strategy to isolate the Iranian regime, the US government has revoked a key sanctions waiver issued in 2018 for the Chabahar port project in Iran.

According to a News 18 report, the State Department announced that the sanctions exception — originally granted under the Iran Freedom and Counter-Proliferation Act (IFCA) to support Afghanistan’s reconstruction and regional economic development — will be officially withdrawn effective September 29.

In November 2018, the US had exempted the project from its broader sanctions on Iran, recognising its economic importance to landlocked Afghanistan. The following year, in February 2019, Afghanistan launched a new export route to India through Chabahar, significantly boosting trade connectivity.

India has been developing the Shahid Beheshti Terminal at Chabahar under a long-term infrastructure partnership with Iran. An updated agreement between India and Iran was signed last year to expand port operations and regional trade links.

According to a Times of India report, 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.

The port has become a linchpin in New Delhi’s strategy to bypass Pakistan and secure trade routes to Afghanistan and Central Asia, added the report.

The port, situated on the Gulf of Oman, not only facilitates regional commerce but also serves as a critical channel for humanitarian aid to Afghanistan. Recent years have seen a sharp increase in cargo throughput, with over 8 million tonnes of goods handled and tens of thousands of containers processed.

Plans to expand the port’s capacity from 100,000 to 500,000 TEUs and connect it to Iran’s railway network by mid-2026 further underline its growing importance.

However, the US Treasury’s recent designation of an international illicit financial network supporting Iran’s Islamic Revolutionary Guard Corps (IRGC) and the revocation of IFCA sanctions waivers mark a significant escalation in Washington’s “maximum pressure” campaign against Iran.

The sanctions target those facilitating Iranian oil sales that fund Iran’s military and proxy groups, hitting its shadow banking system.

For India, the end of the Chabahar waiver complicates its strategic plans. The port now faces potential US sanctions, putting at risk over $120 million in Indian investments, reported Times of India.

It also presents a diplomatic challenge as New Delhi navigates its growing ties with Washington alongside its longstanding partnership with Tehran.

With inputs from agencies