Understanding Why US Action On Chabahar Is A Blow To India

The United States has officially revoked the sanctions waiver that had allowed India to participate in operating Iran’s Chabahar Port, including the Shahid Beheshti terminal. This move directly strikes at India’s strategic ambitions: the port serves as a vital corridor to Afghanistan and Central Asia—bypassing Pakistan—and has been central to India’s vision of regional connectivity and influence.

The impact will begin as early as September 29, 2025, when the removal of the waiver takes effect. Firms, financial institutions, insurers or individuals involved with Chabahar may now be subject to US sanctions. This move potentially jeopardizes trade routes, humanitarian deliveries, and India’s infrastructure investment in the region. It also shifts the competitive balance with Pakistan’s Gwadar Port (operated by China), giving Beijing an opportunity to strengthen its influence in the Indian Ocean–Central Asian nexus.

Strategic Implications

Connectivity & Trade Disruption: Chabahar has been India’s primary alternative route to Afghanistan and Central Asia, enabling transport of goods, aid, and investment, independent of transit through Pakistan. With the waiver gone, that corridor faces legal and financial obstacles.

Geopolitical Shift: India’s counter to China-backed infrastructure projects (like Gwadar) hinges on Chabahar. Weakening India’s role risks ceding strategic initiative in the region to rivals.

Diplomatic & Humanitarian Fallout

• Balance between Washington and Tehran: During the waiver period, India managed a delicate act—aligning with the US on sanctions policy while pursuing its ties with Iran. With the carve-out revoked, maintaining that balance becomes far more challenging.

• Aid and Reconstruction Risk: India has used Chabahar to send essential supplies (wheat, medicines) to Afghanistan and to support reconstruction efforts. Disrupted operations could cut off or significantly hinder those channels.