India has secured a six month exemption from US sanctions on Iran’s Chabahar Port.
Why in the news?
- The United States has granted India a six month sanctions waiver for operating the Chabahar Port in Iran. It also allowed continued development and trade activity.
- The US administration under President Donald Trump last month talked about withdrawing the sanctions waiver granted to the Chabahar port in Iran.
- The sanctions regime on the strategically-located port was set to come into effect from September 29, 2025.
Why has the US sanctioned the Chabahar Port?
- In line with President Donald Trump’s “Maximum Pressure Policy” aimed at isolating the Iranian regime, the US revoked the sanctions waiver previously granted for the Chabahar Port project.
- The US Secretary of State announced the revocation of the 2018 sanctions exception issued under the Iran Freedom and Counter-Proliferation Act (IFCA), effective from September 29, 2025.
- This decision implies that any entity operating the Chabahar Port or engaging in related activities could now face US sanctions under IFCA provisions.
- Earlier, the Chabahar Port project developed jointly by India, Iran, and Afghanistan, was exempted from sanctions due to its strategic importance for Afghanistan’s reconstruction and regional connectivity.
- The 2018 exception under IFCA allowed:
- Development of Chabahar Port and its associated railway line (Chabahar–Zahedan railway).
- Transport of non-sanctionable goods such as humanitarian aid and food supplies to Afghanistan through the port.
- Continued Afghan imports of Iranian petroleum products to support economic stability.
- The revocation of the waiver is expected to impact India’s strategic interests, as Chabahar is a key alternative route to Afghanistan and Central Asia, bypassing Pakistan.
- The move also creates diplomatic challenges for India, which has maintained a delicate balance between its strategic partnership with the US and its long-standing ties with Iran.
- Analysts see this as part of Washington’s broader strategy to tighten economic and geopolitical pressure on Tehran amid growing tensions over Iran’s nuclear program.
About Chabahar Port:
- The Chabahar Port is a strategic sea port in Southeastern Iran on the Gulf of Oman. India and Iran are jointly developing this port. It will facilitate trade with Afghanistan and Central Asia while bypassing Pakistan.
- Chabahar comprises two major terminals –
- Shahid Beheshti Terminal, developed with Indian assistance.
- Shahid Kalantari Terminal, used primarily for regional trade.
- The port is situated in Chabahar City, Sistan and Baluchistan Province, Iran.
- It lies about 170 km west of Pakistan’s Gwadar Port and serves as Iran’s only oceanic port with direct access to the Indian Ocean.
- The port serves as a key component of India’s connectivity strategy, complementing initiatives like the International North-South Transport Corridor (INSTC).
- It features multiple modern cargo handling berths that facilitate the movement of containers, bulk cargo, and petroleum products.
- Importantly, Chabahar is Iran’s only oceanic port, offering direct access to the Indian Ocean. This makes the port strategically important for regional trade, energy transport, and maritime security.
- The port is expected to play a crucial role in strengthening India–Iran–Afghanistan trilateral cooperation and in promoting economic integration in the wider Eurasian region.
History of Chabahar Port:
- The idea of developing Chabahar Port was first proposed by Iran’s Shah in 1973 to utilize the region’s strategic location along the Gulf of Oman.
- However, construction work gained momentum only after the 1979 Iranian Revolution. Later, Iran-Iraq War (1980-1988) delayed large-scale infrastructure development.
- In 2003, India and Iran signed a bilateral agreement to jointly develop the port, recognizing its potential as a gateway to Afghanistan and Central Asia.
- Despite the agreement, international sanctions on Iran hindered significant progress for over a decade, limiting India’s engagement in the project.
- A major breakthrough came in May 2016, when India, Iran, and Afghanistan signed the Trilateral Transit and Trade Agreement in Tehran.
- Under this pact, India obtained the rights to develop and operate two berths at the Shahid Beheshti Terminal of the Chabahar Port.
- The agreement aimed to facilitate regional trade, connectivity, and transit of goods to Afghanistan while bypassing Pakistan.
- In December 2018, India formally took over port operations through India Ports Global Limited (IPGL), marking the beginning of India’s active role in managing and developing the port’s facilities.
- Since then, Chabahar has become a symbol of India–Iran cooperation and a key element in India’s regional connectivity strategy linking the Indian Ocean to Central Asia and Eurasia.
Key Features of Chabahar Port:
- Modern Infrastructure: The port is equipped with container terminals, advanced cargo-handling cranes, and state-of-the-art logistics facilities. All these enable efficient handling of diverse types of maritime cargo.
- Connectivity Hub: Chabahar serves as a vital point in the International North–South Transport Corridor (INSTC), linking India with Iran, Central Asia, Russia, and Europe. It will reduce transit time and cost for international trade.
- Multi-Modal Transport Integration: The port will have multi-modal transport with road and rail networks. It includes the Chabahar–Zahedan railway line, enhancing overland connectivity toward Afghanistan and beyond.
Strategic Importance of Chabahar Port for India
- Bypassing Pakistan: Chabahar provides India a land-sea access route to Afghanistan and further to Central Asian markets without depending on Pakistan’s territory.
- Gateway to Central Asia: It serves as a key transit hub for trade with Kazakhstan, Turkmenistan, and Uzbekistan, connecting with the INSTC network.
- Counterbalance to Gwadar Port: Located close to China-backed Gwadar Port in Pakistan, Chabahar helps India balance China’s growing influence in the Indian Ocean Region.
- Boost to Regional Connectivity: The port facilitates the transport of goods, fertilizers, and humanitarian supplies to Afghanistan and beyond, promoting regional stability and cooperation.
- Support for India’s Energy Security: The port strengthens India’s energy trade and maritime outreach in West Asia and the Persian Gulf.
- Diplomatic Leverage: It enhances India’s strategic engagement with Iran and Afghanistan, while also positioning India as a reliable development partner in the region.
Conclusion:
The US’s removal of the sanction waiver on Chabahar Port marks a critical turning point in India’s regional connectivity and foreign policy strategy. This move not only complicates India’s trade and infrastructure outreach to Afghanistan and Central Asia but also raises broader questions about the stability of Indo-US strategic cooperation. Nevertheless, India continues to emphasize the port’s role as a humanitarian and developmental lifeline, especially for landlocked Afghanistan.
Sources:
- https://indianexpress.com/article/india/india-six-month-us-sanctions-waiver-chabahar-port-trump-10335924/
- https://www.indiatoday.in/india/story/india-granted-6-month-exemption-from-us-sanctions-for-chabahar-port-operations-in-iran-government-2810786-2025-10-30
FAQs:
1. What is the Chabahar Port and where is it located?
Chabahar Port is a strategic seaport located in Sistan and Baluchistan Province, southeastern Iran, on the Gulf of Oman. It is jointly developed by India and Iran to enhance trade connectivity with Afghanistan and Central Asia.
2. Why is Chabahar Port important for India?
Chabahar Port gives India direct access to Afghanistan and Central Asia by bypassing Pakistan. It also strengthens India’s role in regional trade, energy security, and connectivity through the International North–South Transport Corridor (INSTC).
3. Why did the US impose sanctions on Chabahar Port?
The US sanctions on Chabahar Port are part of its “Maximum Pressure Policy” against Iran, aimed at isolating Tehran over its nuclear program. However, India recently secured a six-month waiver allowing continued operation of the port.
4. How does Chabahar Port counter China’s influence in the region?
Chabahar Port serves as a strategic counterbalance to China’s Gwadar Port in Pakistan, part of the China–Pakistan Economic Corridor (CPEC). It strengthens India’s strategic presence in the Indian Ocean Region.
5. What role does Chabahar Port play in Afghanistan’s development?
The Chabahar Port will act as a humanitarian and trade lifeline for landlocked Afghanistan. It allows the flow of food, medicine, and aid. It will also support Afghanistan’s reconstruction and economic growth.
