U.S. Revokes Chabahar Port Sanctions Waiver

Toronto/New Delhi (Bureau)– The Trump administration has announced the revocation of the U.S. sanctions waiver for Iran’s Chabahar Port, effective September 29, 2025. The waiver, initially granted in 2018, permitted India to invest $500 million in the Shahid Beheshti terminal, thereby securing strategic access to Afghanistan and Central Asia while circumventing Pakistan.

The U.S. move exposes Indian operators to potential sanctions under the Iran Freedom and Counter Proliferation Act (IFCA). Analysts caution that this development may bolster China’s influence in the region through Pakistan’s Gwadar Port, part of the China Pakistan Economic Corridor (CPEC).

India now confronts a critical decision: comply with U.S. sanctions and risk forfeiting a decade-long investment, defy sanctions and face international repercussions, or explore alternative regional partnerships to maintain its strategic connectivity aspirations.

This shift highlights the delicate balance India must strike between geopolitical interests and economic initiatives, particularly at a time when regional trade and strategic projects are vital for India’s long-term growth.

By Rajeev Sharma

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