The Trump administration has announced a significant policy shift: individuals and entities involved in operating Iran’s Chabahar Port will face sanctions starting September 29. This decision marks a tightening of measures against the port, which has previously held exemptions.
According to Thomas Pigott, the State Department’s principal deputy spokesperson, this latest action aligns squarely with President Donald Trump’s “maximum pressure” campaign, designed to further isolate the Iranian government. The statement, issued earlier this week, underscores the administration’s continued resolve on this front.
Chabahar Port, situated on Iran’s energy-rich southern coast in the Sistan-Balochistan province, represents a cornerstone of strategic cooperation between India and Iran. Its ongoing development is pivotal for enhancing regional connectivity and fostering stronger trade relationships, particularly benefiting India’s access to Central Asia.
Mr. Pigott elaborated that the Secretary of State has officially revoked the 2018 sanctions exception for the Chabahar Port project. This exemption, granted under the Iran Freedom and Counter-Proliferation Act (IFCA), was intended to facilitate Afghanistan’s reconstruction assistance and economic development. Effective September 29, 2025, this revocation means that any individuals or entities operating the port or engaging in IFCA-described activities could now be subject to severe U.S. sanctions.
It’s important to recall that the U.S. had previously provided a specific exemption for the Chabahar port project in 2018. This exception allowed for the port’s development, the construction of an associated railway, and the shipment of non-sanctionable goods through it for Afghanistan’s benefit, along with Afghanistan’s ongoing imports of Iranian petroleum products. The new guidelines, however, unequivocally withdraw these critical exemptions, altering the operational landscape for the port.
For India, the Chabahar Port project holds immense strategic importance. New Delhi has been a staunch advocate for its development, seeing it as an essential conduit for boosting regional trade and, crucially, establishing direct, sanctions-free connectivity to Afghanistan, bypassing Pakistan.
Furthermore, Chabahar Port is recognized as a vital nexus for the ambitious International North-South Transport Corridor (INSTC). This extensive 7,200-kilometer multi-modal network aims to facilitate the efficient movement of freight across India, Iran, Afghanistan, Armenia, Azerbaijan, Russia, Central Asia, and Europe, offering a shorter and more cost-effective alternative to traditional routes.