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US Sanctions On India’s Chabahar Port Project In Iran Take Effect, Ending Waiver
The Chabahar Port, Iran. (Image via indiashippingnews).
US sanctions on India’s Chabahar port project in Iran officially came into force on Monday (29 September), ending the rare waiver Washington had maintained since 2018, the Money Control reported.
The move forces New Delhi to reassess its regional strategy as it faces potential American penalties.
The decision is part of President Donald Trump’s “maximum pressure” campaign against Tehran.
State Department spokesman Tommy Pigott said the exemption, originally granted to support Afghanistan’s reconstruction, was no longer valid after the Taliban’s return to power. “The revocation is consistent with President Trump’s maximum pressure policy to isolate the Iranian regime,” Pigott stated.
The sanctions follow the reimposition of broader UN measures against Iran, intensifying pressure over its nuclear programme.
For India, the development marks a shift in the port’s role. When the waiver was first granted in 2018, Chabahar was positioned as New Delhi’s gateway to Afghanistan, allowing it to bypass Pakistan and counter China’s influence through Gwadar port.
However, India last year signed a 10-year, $370 million agreement to expand Chabahar, underscoring its long-term value.
Joshua Kretman, a former US sanctions official, cautioned: “If that sanctioned entity operates globally, needs access to major banks or dollar clearing, there is legitimate reason for concern.”
India’s foreign ministry spokesperson Randhir Jaiswal said New Delhi was still “examining the implications” of the US decision.
Analysts predict caution from India. Aparna Pande of the Hudson Institute noted, “India will likely adopt a wait-and-watch approach.”
Others see opportunity. Strategist Kadira Pethiyagoda suggested closer ties with Iran could give India leverage in its dealings with the US, Gulf states, Israel, and other non-Western powers.
