India has secured a six-month exemption from US sanctions on Iran’s Chabahar port, the Ministry of External Affairs said on Thursday, adding that talks with Washington to finalise a trade deal are ongoing.
The US administration led by President Donald Trump earlier last month said it is withdrawing the sanctions waiver granted to the Chabahar port in Iran, which is being developed by India, thereby ending the waiver given in 2018 during Trump 1.0.
VIDEO | Delhi: “US has granted India six months exemption from American sanctions on Chabahar port; we remain engaged with US to conclude a trade deal”, says MEA spokesperson Randhir Jaiswal (@MEAIndia) during a press briefing.#Chabahar #US #Sanctions
(Full video available on… pic.twitter.com/JxhoGpBLsx
— Press Trust of India (@PTI_News) October 30, 2025
The sanctions regime on the strategically-located port was set to come into effect from September 29.
Why US sanctioned Chabahar port
Making the announcement of revoking the waiver, US State Department’s principal deputy spokesperson Thomas Pigott said, “…consistent with President Trump’s maximum pressure policy to isolate the Iranian regime, the Secretary of State has revoked the sanctions exception issued in 2018 under the Iran Freedom and Counter-Proliferation Act (IFCA) for Afghanistan reconstruction assistance and economic development, effective September 29, 2025. Once the revocation is effective, persons who operate the Chabahar Port or engage in other activities described in IFCA may expose themselves to sanctions under IFCA.”
The US had exempted the Chabahar port project from sanctions in 2018, saying “the secretary has provided for an exception from the imposition of certain sanctions under the Iran Freedom and Counter-Proliferation Act of 2012 (IFCA) with respect to the development of Chabahar Port and the construction of an associated railway and for the shipment of non-sanctionable goods through the port for Afghanistan’s use, as well as Afghanistan’s continued imports of Iranian petroleum products.” However, with the new guideline, these exemptions will be removed.
Located in southeastern Iran, the Chabahar Port is a key strategic project for India, offering its only direct maritime access to the Arabian Sea via Iran while bypassing Pakistan. The port is designed to serve as a vital trade link connecting India with Afghanistan and Central Asian nations such as Uzbekistan and Kazakhstan, providing a shorter and more dependable trade corridor.
The port is also part of the proposed International North-South Transport Corridor (INSTC), a multi-modal transportation project linking the Indian Ocean and Persian Gulf to the Caspian Sea via Iran, and onward to northern Europe via St Petersburg in Russia.