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US Removes Sanctions Waiver Linked to Chabahar Port of Iran — What Does It Mean for India?

The US Treasury cited concerns over illicit financial flows benefiting Iran's military and regional proxies as the reason for revoking the waiver, impacting India’s $25 million investment.

  • The United States revoked the 2018 sanctions waiver for Chabahar Port, effective September 29, 2025, the U.S. State Department announced on September 18, 2025.
  • Washington cited Chabahar Port's growing strategic relevance to Iran and concerns over illicit financial flows linked to Tehran's military networks, acting alongside US Treasury sanctions on alleged illicit networks funneling oil revenues to the Islamic Revolutionary Guard Corps .
  • India Ports Global Limited faces sanctions risk, potentially exposing over $120 million in investments tied to the May 13, 2024, contract at Chabahar port, once the waiver lapses.
  • India's regional connectivity plans may be complicated as Chabahar's key role in delivering humanitarian supplies and trade to Afghanistan faces disruption, challenging New Delhi's diplomatic balance with Washington and Tehran.
  • Plans to expand capacity from 100,000 to 500,000 TEUs by mid-2026 and rising throughput of over 8 million tonnes near Gwadar port, Pakistan, mark a strategic setback for India.
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US withdraws waiver for Iran’s Chabahar port, hitting India’s investment

Washington has revoked the sanctions waiver for Iran’s Chabahar port.

·Tehran, Iran, Islamic Republic of
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Iran's Chabahar Port is strategically and commercially important to India. Last year, India signed a 10-year agreement with Iran to manage it. It has also invested billions of dollars in the port's development. However, US sanctions have posed significant challenges not only for Iran but also for India.

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newsmobile.in broke the news in on Thursday, September 18, 2025.
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