The US grants India a six-month sanctions waiver for Iran’s Chabahar Port, boosting trade connectivity and strengthening India’s regional influence.
TheInterviewTimes.com | New Delhi | October 31, 2025 — In a major diplomatic breakthrough, the United States has granted India a six-month sanctions waiver for Chabahar Port in Iran — a critical move that reinforces India’s regional connectivity strategy and marks a significant shift in Washington’s stance toward New Delhi’s strategic interests in West Asia.
The Chabahar Port waiver, effective from October 29, 2025, reverses the earlier US decision to revoke relief for the project. The exemption allows India to continue its investments and operations without the threat of sanctions, thereby ensuring the continuity of one of its most strategically vital infrastructure projects abroad.
India Welcomes the Chabahar Port Sanctions Waiver
India’s Ministry of External Affairs spokesperson, Randhir Jaiswal, confirmed the waiver, emphasizing that it provides operational clarity and flexibility for ongoing projects at Chabahar Port. Located in Iran’s Sistan-Baluchistan province, the port serves as a crucial trade hub linking India with Afghanistan, Central Asia, and Europe — while bypassing Pakistan.
The decision follows intense back-channel diplomacy after the Trump administration announced in September 2025 the termination of previous exemptions under its “maximum pressure” policy on Iran. According to official sources, India initially secured a short-term reprieve but successfully negotiated a six-month extension, highlighting the growing strategic importance of Chabahar Port in the Indo-Pacific and Eurasian trade corridors.
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Strategic Role of Chabahar Port in India’s Regional Vision
The Chabahar Port project is central to India’s long-term geopolitical and economic outreach. Operated by India Ports Global Limited since December 2018, it has become a key maritime gateway for trade with Afghanistan and Central Asia.
To date, Chabahar Port has handled over 134,000 TEUs of containerized cargo and more than 8.7 million tons of bulk goods. Under a 10-year agreement signed in May 2024, India has already invested around $120 million in equipment and committed an additional $250 million credit line for infrastructure development. These investments underscore India’s vision to position Chabahar as a central node in the International North-South Transport Corridor (INSTC).
Humanitarian and Economic Significance
Beyond trade, Chabahar Port has played a vital humanitarian role in the region. It facilitated the shipment of 2.5 million tons of wheat and 2,000 tons of pulses to Afghanistan — a lifeline for the landlocked nation since the Taliban takeover in 2021.
By offering an alternative to Pakistan’s Karachi and Gwadar ports, Chabahar Port provides India and its partners with a reliable and politically neutral trade route. It not only enhances regional supply chains but also strengthens India’s credibility as a development partner in the broader West Asian and Central Asian region.
US Foreign Policy and India’s Geopolitical Leverage
The Chabahar Port waiver also signifies a subtle recalibration in US foreign policy. While Washington continues to maintain pressure on Tehran, the exemption acknowledges India’s unique position as a strategic partner in maintaining regional balance.
Experts view this decision as a pragmatic recognition of India’s stabilizing role in the region. Allowing Chabahar Port operations to continue serves both US and Indian interests — bolstering connectivity, economic development, and counterbalancing China’s growing influence through Iran’s Chabahar and Pakistan’s Gwadar ports.
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What Lies Ahead for Chabahar Port and India’s Strategy
As the six-month waiver takes effect, all eyes are on New Delhi’s next steps. Analysts suggest India will use this period to accelerate infrastructure upgrades, expand cargo operations, and deepen its footprint in Chabahar Port to secure its long-term economic and strategic objectives.
The development marks a diplomatic victory for India’s foreign policy, which successfully balanced ties with both Washington and Tehran. It also underscores the continuing importance of Chabahar Port as a strategic asset — not just for India, but for the stability and growth of the wider Eurasian trade network.
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Conclusion
The US sanctions waiver for Chabahar Port represents more than just a temporary relief — it’s a recognition of India’s growing role as a regional connector and stabilizing force. As India deepens engagement with Iran and Central Asia through Chabahar Port, it reaffirms its position as a global player shaping the future of trade, diplomacy, and connectivity across the Indo-Pacific and beyond.