The United States has announced that it will revoke the sanctions waiver granted to India in 2018 for operating the Chabahar Port in Iran. This exemption was under the Iran Freedom and Counter-Proliferation Act (IFCA), allowing Indian firms to continue work without fear of U.S. penalties. The waiver’s cancellation becomes effective September 29, 2025.

India is now examining what this means for its investments—especially the Shahid Beheshti terminal, infrastructure development, and its broader connectivity goals towards Afghanistan and Central Asia. The Chabahar Port has been key to India’s strategic plan to bypass Pakistan for trade routes, under the International North-South Transport Corridor (INSTC).

New Delhi will need to balance relations with the U.S., Iran, Afghanistan, plus regional partners, while protecting the project’s viability.