US Grants India Six-Month Sanctions Waiver on Chabahar Port
The United States has extended a six-month waiver on sanctions for India’s operations at Iran’s Chabahar Port, effective from October 29. This waiver provides temporary relief amid the Trump administration’s earlier threat to revoke the exemption. The port is strategically vital for India, enabling direct access to Afghanistan and Central Asia and bypassing Pakistan, supporting regional connectivity and economic interests.
India secured a six-month extension of the US sanctions waiver on operations at Iran’s Chabahar Port, effective from October 29, following weeks of uncertainty triggered by the Trump administration’s announcement to revoke the seven-year-old exemption. This exemption, initially granted in 2018 under the Iran Freedom and Counter-Proliferation Act, enables India’s strategic link to Afghanistan and Central Asia, bypassing Pakistan, and is a critical part of the International North-South Transport Corridor (INSTC). The port’s operation supports India’s regional connectivity plans and counters China’s Belt and Road Initiative represented by Gwadar Port in Pakistan. The waiver allows India to continue its 10-year operational deal with Iran, including a $120 million infrastructure investment and a $250 million credit line. Despite this extension providing some breathing space, US policy on Iran remains unpredictable, and India continues to face pressure related to its oil imports from Russia. Diplomatic efforts by New Delhi secured the waiver, but it remains a temporary reprieve from sanctions risk that could impact India’s long-term strategic and economic interests in the region.
