US Sanctions Move Threatens India’s Chabahar Port Plans

Fri Sep 19 2025
icon-facebook icon-twitter icon-whatsapp

Key points

  • India faces sanctions risk over port
  • Trump wants return to Bagram base
  • Bagram seen as check on China

ISLAMABAD: India’s strategic ambitions at Iran’s Chabahar Port face a major setback after Washington announced it will revoke New Delhi’s sanctions waiver from September 29. The decision, part of the US “maximum pressure” campaign against Tehran, exposes India’s $120 million investment and long-term connectivity plans to Afghanistan, Central Asia, and beyond to possible penalties.

Previously, the waiver allowed India to continue its work on the port without facing penalties under the Iran Freedom and Counter-Proliferation Act (IFCA). Chabahar holds major strategic value for India as it offers access to Afghanistan and Central Asia while bypassing Pakistan, reports Hindustan Times.

In a 16 September statement, the US State Department said the move was “consistent with President Trump’s maximum pressure policy to isolate the Iranian regime.” It warned that “persons who operate the Chabahar Port or engage in other activities described in IFCA may expose themselves to sanctions under IFCA.”

India’s connectivity plans

The US claims the decision supports broader efforts to dismantle “illicit financial networks that sustain the Iranian regime and its military activities.”

India now faces a dilemma. In May 2024, New Delhi signed a 10-year agreement with Iran to operate Chabahar Port, investing around $120 million, with plans to offer $250 million in credit for surrounding infrastructure. The port is a key part of India’s connectivity plans, including links to the International North-South Transport Corridor to Russia and Europe.

Chabahar also helps counter China’s growing presence in the Arabian Sea, as it lies just 140km from Gwadar Port in Pakistan, managed by Beijing.

US return to Bagram air base

Meanwhile, President Donald Trump has suggested the US may re-establish a presence at Afghanistan’s Bagram Air Base, four years after the American withdrawal. Speaking in the UK alongside Prime Minister Keir Starmer, Trump said, “We’re trying to get it back,” tying the move to the need to counter China.

“We were going to leave Afghanistan, but we were going to leave it with strength and dignity. We were going to keep Bagram Air Base… We gave it to them for nothing.”

He added, “One of the reasons we want that base is… it’s an hour away from where China makes its nuclear weapons.”

Though no formal talks with the Taliban have been confirmed, Trump hinted they may cooperate, stating, “We’re trying to get it back because they need things from us.”

icon-facebook icon-twitter icon-whatsapp