U.S. Sanctions to Hit Chabahar Port Operators from September 29

Rapid Summary:

• The Trump management announced that the Chabahar Port in Iran will no longer be exempt from U.S. sanctions under the Iran Freedom and Counter-Proliferation Act (IFCA), effective September 29, 2025.
• This decision aligns with President Trump’s “maximum pressure” policy to isolate Iran.
• The Chabahar Port is located in Sistan-Balochistan province on Iran’s southern coast and is being jointly developed by India and Iran to enhance connectivity and trade ties, particularly with Afghanistan.
• Since 2018, the U.S. had granted exemptions for projects at Chabahar under IFCA due to its significance for Afghanistan’s reconstruction assistance and economic development.
• These exemptions covered port development, railway construction linked to the port, shipment of non-sanctionable goods through the port for Afghanistan’s use, as well as Afghan imports of Iranian petroleum products.
• India’s strategic focus on Chabahar includes its importance in regional trade facilitation such as access to Afghanistan and involvement in the International North-South Transport Corridor (INSTC), which connects freight routes across India, Central Asia, Russia, Europe.

Indian Opinion Analysis:

The revocation of sanctions exemptions for chabahar Port presents meaningful geopolitical challenges for India’s regional projects.Over recent years, India has relied on this strategic partnership with Iran to bypass Pakistan’s restrictions and establish a direct trade link with resource-rich Afghanistan while strengthening wider connectivity through INSTC.

This move by the U.S., driven by domestic policies towards isolating tehran’s regime under maximum pressure campaigns against Iran’s economy, complicates India’s logistics strategies. It could hinder efforts like boosting bilateral commerce or providing humanitarian aid via this corridor into war-torn regions such nearby Afghan territory thus indirectly closing multiframework flows’.

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