In a significant escalation of its “maximum pressure” campaign against Iran, the Trump administration has announced the revocation of a key sanctions waiver that allowed India to operate the strategic Chabahar Port in southeastern Iran. The waiver, initially granted in 2018 under the Iran Freedom and Counter-Proliferation Act (IFCA), will be officially terminated on September 29, 2025, according to a statement released by the U.S. Department of State.
The move directly impacts India’s long-term involvement in the port, where it signed a 10-year agreement in 2024 to operate the Shahid Beheshti terminal through Indian Ports Global Ltd. (IPGL). The agreement marked a major milestone in India’s efforts to establish a trade and transit corridor to Afghanistan and Central Asia, bypassing Pakistan.
“Consistent with President Trump’s maximum pressure policy to isolate the Iranian regime, the Secretary of State has revoked the sanctions exception… effective September 29, 2025,” said Principal Deputy Spokesperson Thomas Pigott. “Once the revocation is effective, persons who operate the Chabahar Port or engage in other activities described in IFCA may expose themselves to sanctions.”
The Chabahar Port, strategically located near the China-controlled Gwadar Port in Pakistan, has long been viewed as a critical asset for India in the region. With two main terminals—Shahid Kalantari and Shahid Beheshti—the port offers significant cargo-handling capabilities and serves as a gateway for trade to Afghanistan and Central Asia.
The U.S. announcement also comes amid a broader crackdown on Iran’s financial networks, which the administration accuses of funding terrorism and advancing military programs that threaten U.S. forces and allies. Several individuals and entities in Hong Kong and the UAE were also sanctioned for facilitating Iranian oil sales, benefiting the Islamic Revolutionary Guard Corps Qods Force (IRGC-QF) and Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL).
“This action is being taken pursuant to counterterrorism authority E.O. 13224,” the State Department said, adding that this marks the fourth round of sanctions targeting Iran’s shadow banking infrastructure since the implementation of National Security Presidential Memorandum 2.
The revocation of the waiver could significantly derail India’s strategic ambitions in the region and strain Indo-U.S. relations, especially given the timing—just over a year after the Chabahar agreement was renewed for a decade. New Delhi is yet to issue an official response.
