US Approves Six-Month Exemption For India On Chabahar Port Sanctions; Why This Move Matters For New Delhi’s Energy Needs

The United States has granted India a six-month sanctions waiver to continue operations at Iran’s strategically important Chabahar Port, the Ministry of External Affairs (MEA) confirmed on Wednesday. The waiver, originally scheduled to lapse on September 29, marks an important diplomatic reprieve for India, which has consistently argued for the port’s humanitarian and regional connectivity value. Chabahar Port is a vital gateway to Afghanistan and the broader Central Asian region. It also offers an alternative trade route that circumvents Pakistan’s land restrictions.

Strategic Significance And Regional Connectivity

-Uninterrupted progress on one of India’s most important regional connectivity projects.

-Supports the delivery of food supplies, medical aid, and essentials to Afghanistan.

-Strategically located on the Gulf of Oman, offering direct maritime access to landlocked Central Asian countries.

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Long-Term Operational Commitment

- India signed a 10-year agreement in 2024 with Iran to operate the Shahid Beheshti Terminal.

- The deal cements India's long-term strategic presence at the port.

- The functions include the operation of ports, infrastructural development, and facilitation of trade by IPGL.

- The INSTC will connect India with Russia, Iran, and Central Asia by sea, rail, and road routes.

- When the corridor becomes fully operational, it is expected to cut transit time and reduce costs significantly.

- Offers an alternative to trade routes bound for Europe via the Suez Canal.

As India gets relief from US sanctions, on the other hand Iran remains subject to tight US sanctions on its banking, energy, and shipping sectors, making foreign investors jittery about investing in the country.

Earlier in September, the US State Department warned that Washington reserved the right to sanction entities involved in operations at Chabahar, or in activities related to the port, and that sanctions are part of America’s maximum pressure campaign against Tehran. The temporary waiver for India means critical breathing space for infrastructure development and regional diplomacy.

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Chabahar port has become central to India-Afghanistan relations, facilitating humanitarian deliveries, including ambulances dispatched during a recent Kabul delegation visit.