"Investigating the repercussions": MEA discussing the termination of the exemption for the Chabahar port undertaking by the US
The strategic Chabahar Port in southeastern Iran, known for its logistical advantages, finds itself in the spotlight once more. The port, situated near the USA-controlled Gwadar Port, boasts two main terminals, Shahid Kalantari and Shahid Beheshti, each with five berths.
In 2024, India signed a 10-year agreement with Iran for the operation of the Chabahar Port, with the Shahid Beheshti terminal being a significant part of the port’s cargo handling capabilities. The agreement was inked between Indian Ports Global Ltd. (IPGL) and Iran’s Port and Maritime Organisation (PMO).
However, a recent development has cast a shadow over this agreement. The US Department of State has revoked the sanctions exception issued in 2018 for Afghanistan reconstruction assistance and economic development related to the Chabahar Port. This decision, effective from September 29, 2025, will likely impact companies or individuals operating or involved with the Chabahar port in Iran.
The US move is aimed at targeting Iran’s financial network for its military, as funds from activities at the Chabahar Port have been linked to the Islamic Revolutionary Guard Corps Qods Force (IRGC-QF) and Ministry of Defence and Armed Forces Logistics (MODAFL). These networks have facilitated the sale of Iranian oil, with proceeds supporting regional terrorist proxies and advancing weapons systems that pose a direct threat to US forces and allies.
The revocation of the sanctions waiver will affect entities engaged in the port’s operation and economic activities linked to the exemption that is being revoked. The Ministry of External Affairs in India is examining the implications of this decision by the US administration.
The Chabahar Port operation agreement grants India operational control over the Shahid Beheshti terminal, a key component of Chabahar’s port infrastructure. It remains to be seen how this decision will impact the future of this strategic partnership between India and Iran.
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