In recent months, Washington has swung from revoking to restoring India’s sanctions waiver for operating Iran’s Chabahar port. The ‘waiver on, waiver off’ routine, however, comes with a clear strategic intent.

Waiver On, Waiver off

In September 2025, the United States pulled the rug out from under one of India’s most carefully nurtured strategic ventures: the Chabahar Port in Iran. Long viewed by New Delhi as a critical gateway to Afghanistan and Central Asia, Chabahar suddenly became a high-stakes chess piece in Washington’s policy game. On September 16, the US Department of State announced it would revoke the special exemption granted in 2018 under the Iran Freedom and Counter-Proliferation Act (IFCA), with the revocation taking effect September 29. Overnight, Indian companies, shippers, insurers, and banks involved in the port’s operations were cast into uncertainty: their assets could be frozen, their access to the US financial system curtailed, and their commercial contracts imperilled.

This move did not occur in isolation. At the same time, New Delhi was itself involved in a high-stakes game with the US over bilateral trade. Specifically, it is resisting US pressure to halt oil imports from Russia. By targeting Chabahar, Washington signaled that it was willing to leverage unrelated strategic projects to enforce compliance elsewhere, effectively turning Indian economic and geopolitical interests into bargaining chips. Yet the situation shifted quickly:

© New Eastern Outlook