US withdraws sanctions waiver on Iran’s Chabahar Port: The US has revoked a waiver exempting Iran’s Chabahar Port from sanctions — exposing its operators to punitive trade actions, according to a statement released last week. The decision — slated to take effect 29 September — will hit Indian Ports Global Limited (IPGL), which began operations in the port in 2018 amid an exit wave from other global operators after Trump’s first administration re-imposed sanctions on the Persian state.

The US decision will derail USD 370 mn in planned Indian investments in the port, after India signed a 10-year agreement in May 2024 to develop and run the Shahid Beheshti terminal at Chabahar Port through IPGL — committing USD 120 mn in funding and arranging another USD 250 mn as debt. The arrangement is now at risk, with the US State Department warning that entities involved could face penalties under the IFCA, The Hindu Business Line reports.

Why does the port matter to India? The port allows New Delhi to bypass ports belonging to its rival Pakistan, creating a new trade route to Iran, Afghanistan, and other countries in Central Asia, Reuters reported last year. A total of 2.5 mn tons of wheat and 2k tons of pulses have reached Afghanistan from India through Chabahar Port.

Background: The port overlooks the Gulf of Oman and boasts two terminals, each with at least five berths. The Indian firm has been operating the Shahid Beheshti terminal since late 2018, handling over 90k TEUs and over 8.4 mn tons of bulk and general cargo. The port was exempted from the US sanctions due to its importance to the flow of goods to Afghanistan — an issue viewed then as critical to reconstruction efforts before the US withdrew its military presence in the country.

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