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US revokes Chabahar waiver, a major blow to India’s naval strategy

⏱ 2 minute read
US revokes Chabahar waiver

The United States has revoked the 2018 sanctions exception for Iran’s Chabahar Port, exposing anyone operating at the facility to penalties under the Iran Freedom and Counter-Proliferation Act (IFCA).

The move, aligned with President Donald Trump’s “maximum pressure” policy, takes effect September 29, and directly threatens India’s plan to develop and run a terminal at the port.

Waiver withdrawal resets the landscape around Iran sanctions

The State Department said that once the revocation is active, entities that operate Chabahar or engage in activities covered by IFCA may face sanctions.

Washington framed the step as part of a broader push to isolate Tehran.

The decision ends the Trump-era waiver granted in 2018 for Afghanistan reconstruction and related economic activity.

Sharp setback for New Delhi’s regional connectivity ambitions

India has pitched Chabahar as a flagship route for trade and transit. The new restrictions undercut that narrative.

They arrive alongside a steep 50% US tariff on India, the highest in South Asia, and growing strains in the bilateral track.

For New Delhi, the timing is awkward and the policy risk is obvious.

Openings for Pakistan’s corridors and balanced regional trade

For Pakistan, the policy shift strengthens the case for reliable, sanctioned-compliant corridors like CPEC routed through its territory.

It highlights the value of transparent, rules-based connectivity that keeps trade flowing without legal risk.

As regional partners reassess supply chains, Pakistan can present efficient port and logistics alternatives in the shape of Gawadar port that support stability and growth.

Ten-day clock, compliance risks, and operator exposure

The revocation becomes effective in about ten days.

Companies tied to Chabahar operations must weigh legal exposure and financing constraints.

Insurance, banking, and shipping support may tighten. In this environment, prudent actors will prioritize compliant routes.

Pakistan stands ready to facilitate lawful commerce and to advance cooperative projects that serve regional prosperity and peace.

Read more: Five takeaways from Trump’s high-profile meeting with Starmer

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