The United States has granted India a fresh extension on a sanctions waiver for its operations at Iran’s Chabahar Port, a strategic facility central to India’s regional connectivity ambitions, particularly in relation to Afghanistan and Central Asia.
The waiver, which had expired on October 28, has now been extended until early next year, according to Indian government sources cited by the Economic Times. The extension comes after a series of high-level diplomatic engagements between Indian and US officials, during which New Delhi underscored the port’s significance in facilitating humanitarian assistance and economic engagement with landlocked Afghanistan.
The Chabahar Port, located in southeastern Iran along the Gulf of Oman, is the only Iranian port with direct access to the Indian Ocean. It has long been viewed by India as a counterweight to Pakistan’s Gwadar Port, which is being developed with Chinese backing. Through Chabahar, India has aimed to bypass Pakistan and establish a reliable trade route into Afghanistan and Central Asia.
While the Trump administration has generally taken a hard line on Iran, the Chabahar Port project has been a notable exception. Since 2018, Washington has granted periodic waivers, recognizing the port’s potential role in stabilizing Afghanistan by improving regional trade and humanitarian access.
In negotiations leading up to the latest extension, India reportedly made the case that halting operations at Chabahar could further isolate Afghanistan and hamper aid deliveries amid worsening humanitarian conditions following the Taliban’s return to power in 2021.
The extension follows India’s receipt of a prior waiver through late October. The US had initially set a revocation deadline of September 29, but this was extended to allow further talks.
Strategic stakes in the region
Chabahar remains a linchpin in India’s broader regional strategy, especially after the collapse of the US-backed government in Kabul. With most Western donors reducing their footprint in Afghanistan, New Delhi has sought to maintain limited engagement—primarily through humanitarian channels—while navigating the complex geopolitics of Iran, the Taliban, and its rival Pakistan.
The port is also part of the International North-South Transport Corridor (INSTC), a multilateral initiative aimed at facilitating trade between India, Iran, Russia, and Central Asia.
While the waiver is a win for India’s foreign policy, analysts say the Chabahar project continues to face significant delays due to US sanctions on Iran’s broader economy, banking restrictions, and Iran’s own bureaucratic hurdles.
For now, however, the extension gives India continued access to a critical strategic asset—albeit under the watchful eye of Washington.
