India has been granted a six-month waiver from U.S. sanctions on the operations at Iran’s strategically significant Chabahar Port, effective from October 29, 2025. This extension comes amid ongoing tensions and uncertainties in U.S.-Iran relations but provides temporary relief for India’s regional connectivity and trade ambitions.??

Context and Significance of the Waiver

• The waiver allows India to continue operating at Chabahar Port, which serves as a vital maritime link connecting India with Afghanistan, Central Asia, and beyond, bypassing Pakistan.?
• Chabahar is part of India’s broader strategic initiative, including the International North-South Transport Corridor (INSTC), aimed at diversifying trade routes and countering Chinese infrastructure projects like the Belt and Road Initiative.?

Background and Recent Developments

• The U.S. initially granted the waiver in 2018, but Washington announced its revocation in September 2025 as part of the maximum pressure campaign against Iran, threatening to impose sanctions on port operators under the Iran Iran Freedom and Counter-Proliferation Act (IFCA).?
• After intensive diplomatic engagements, the U.S. agreed to a temporary exemption for India, extending the waiver for six months, which provides a crucial window for India’s regional trade strategies.??

Broader Implications

• The waiver emphasizes the importance of Chabahar for India’s regional outreach, especially for trade and development projects in Afghanistan and Central Asia, with the port being seen as a counterweight to Chinese influence in the region.??
• However, it remains a temporary relief, and the future of U.S.-India cooperation on sanctions will depend on geopolitical developments and negotiations in the coming months.?

This extension underscores India’s strategic balancing act amidst changing U.S. policies towards Iran and regional connectivity initiatives.
 
What are the terms and conditions of the six-month waiver?
The terms and conditions of the six-month waiver granted by the U.S. to India on sanctions related to the Chabahar Port are as follows:

• The waiver was extended effective from October 29, 2025, allowing India to continue its operations at Chabahar Port without facing U.S. sanctions for this period.
• The exemption is under the Iran Freedom and Counter-Proliferation Act (IFCA), which originally recognized Chabahar's importance for Afghanistan’s development and regional connectivity.
• The waiver protects India's interests related to the 10-year operational deal signed in May 2024 between Indian Ports Global Limited and Iran’s Port and Maritime Organisation, which includes commitments of $120 million for port infrastructure and a $250 million credit line to Iran.
• The temporary relief ensures that Indian entities operating at Chabahar will not be sanctioned, allowing uninterrupted development and management of the port.
• Despite this reprieve, the waiver is a limited six-month extension and does not guarantee long-term exemption; India continues to evaluate options amid changing U.S. policy on Iran.
• The U.S. has warned that once the waiver expires, entities operating Chabahar could face sanctions, and the temporary relief does not change U.S. "maximum pressure" policy on Iran.
• The waiver is specifically about sanctions targeting port operations and related activities described in the IFCA; it does not extend to other facets like oil imports from Iran or Russia, which India is separately assessing.

In summary, the waiver secures India's strategic and economic investments in Chabahar Port temporarily, preventing disruptions but maintaining uncertainty beyond the six-month period.
 

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