The Trump administration recently announced that individuals involved in operations at Iran’s Chabahar Port will face sanctions starting later this month. This significant announcement was made by State Department principal deputy spokesperson Thomas Pigott, reaffirming President Donald Trump’s unwavering “maximum pressure” campaign to isolate the Iranian regime.
Chabahar Port, strategically located in Iran’s resource-rich Sistan-Balochistan province on its southern coast, is a collaborative development project between India and Iran. Its primary goal has been to enhance regional connectivity and strengthen trade relationships, particularly benefiting India’s access to Afghanistan.
The Secretary of State has formally withdrawn a sanctions exemption that was initially granted in 2018 under the Iran Freedom and Counter-Proliferation Act (IFCA). This exemption had previously allowed for Afghanistan’s reconstruction assistance, economic development activities, and the shipment of non-sanctionable goods through Chabahar Port, alongside Afghanistan’s ongoing imports of Iranian petroleum products. With this revocation, effective September 29, 2025, any entities or individuals participating in Chabahar Port operations or other activities outlined in IFCA could become subject to U.S. sanctions.
For years, India has championed the Chabahar port project, recognizing its immense potential to invigorate regional trade and provide a crucial conduit for goods to Afghanistan, bypassing Pakistan. The port is also a foundational element of the ambitious International North-South Transport Corridor (INSTC). This extensive 7,200-kilometer multi-modal transportation network aims to facilitate the movement of freight between India, Iran, Afghanistan, Armenia, Azerbaijan, Russia, Central Asia, and Europe, promising to reshape regional economic dynamics.