US waives sanctions on Chabahar for 6 months

India has secured a fresh six-month waiver from the US to continue operations at Iran’s strategic Chabahar Port, restoring a crucial link for regional connectivity that had come under threat following the recent withdrawal of the exemption.

“We have been granted exemption for a six-month period on the sanctions that were applicable on Chabahar,” Ministry of External Affairs spokesperson Randhir Jaiswal said at a briefing on Thursday.

The waiver comes barely six weeks after Washington revoked India’s earlier exemption, which was set to lapse on September 29, bringing the port and associated activities under the ambit of its sanctions imposed on Iran.

The reversal of the decision marks a diplomatic success for New Delhi, which had mounted sustained effort to convince Washington of Chabahar’s humanitarian and strategic significance.

The Chabahar project, jointly developed by India and Iran, has been a crucial link for humanitarian supplies and trade with Afghanistan, bypassing Pakistan.

Washington had twice, in 2018 and 2019, formally conveyed to India that the modernisation of Chabahar would be exempt from sanctions, given its significance as a gateway for aid to Afghanistan. Strategically located on the Gulf of Oman, Chabahar has long been viewed by India as a counter to Pakistan’s Gwadar Port, operated by China.

Last May, when India and Iran signed a 10-year agreement to further develop Chabahar, the US had within hours cautioned of “potential sanctions” on countries pursuing business with Tehran. India formally took over port operations at the end of 2018, shortly after Washington assured New Delhi that Chabahar would remain exempt.

This was reaffirmed at the 2019 India-US “two-plus-two” dialogue. With Pakistan denying India transit rights into landlocked Afghanistan, the port has been a vital channel for New Delhi’s outreach.

However, in mid-September, the US State Department announced that it was revoking the waiver as part of its “maximum pressure” campaign to isolate Tehran, prompting concern in New Delhi over potential disruptions to ongoing port operations.

Officials said the reinstated waiver would allow India to maintain port management and related logistics operations under the India Ports Global Ltd (IPGL) framework, which oversees the Shahid Beheshti terminal at Chabahar.

The extension is also expected to calm regional partners that rely on the port for essential goods, especially Afghanistan, which depends on Chabahar for trade access.

With the new waiver in place, India is expected to accelerate its ongoing expansion and logistics operations at the terminal, while continuing engagement with both Washington and Tehran to ensure the port’s activities remain insulated from future risk of sanctions.