US Ends Chabahar Waiver: What This Means for India’s Strategic Port Gamble

The United States has revoked the special sanctions waiver for Iran’s Chabahar Port, effective September 29, 2025—putting India’s multi-million-dollar connectivity project at serious risk. Chabahar, developed and operated by India since 2018, has been a vital gateway to Afghanistan and Central Asia, bypassing Pakistan and countering China’s presence at Gwadar. With this move, Indian entities operating, financing, or servicing the port could face heavy US Treasury penalties. The sanctions are part of President Trump’s “maximum economic pressure” policy against Tehran, targeting Iranian oil revenues and shadow financial networks linked to the Islamic Revolutionary Guard Corps (IRGC). India has already invested over $120 million in the project, with ambitious plans to expand cargo capacity five-fold and link the port to Iran’s railway by 2026. But with sanctions back in place, the future of one of New Delhi’s most important connectivity corridors hangs in balance—raising questions about India’s ability to navigate between its ties with the US and its strategic interests in Iran.