The United States has decided to extend the sanctions exemption for India’s work at the Chabahar Port project in Iran, giving a major boost to New Delhi’s efforts to improve trade and connectivity with Central Asia and Afghanistan. The new exemption will now remain valid until April 2026, allowing India Ports Global Limited (IPGL) to continue its operations at the port without worrying about US sanctions.

The exemption was first granted in 2018 under the Iran Freedom and Counter-Proliferation Act (IFCA). It was issued to recognize the port’s importance for regional development and humanitarian aid, especially for Afghanistan, which depends heavily on trade routes through neighboring countries. Recently, there were concerns when the waiver was briefly revoked, but this extension has provided relief to both India and Iran.

About Chabahar Port 

The Chabahar Port plays a crucial role in India’s strategy to bypass Pakistan while sending goods to Afghanistan and other Central Asian countries. India has already used this port to send shipments of wheat and urea as part of its aid to Afghanistan.

In May 2024, India signed a 10-year agreement with Iran to continue developing the port’s Shahid Beheshti terminal. Under this deal, India has invested over $120 million to upgrade equipment, improve port operations, and link Chabahar to the International North-South Transport Corridor (INSTC),  a trade route that connects India with Russia, Europe, and Central Asia through Iran.

Located on Iran’s southeastern coast along the Gulf of Oman, Chabahar is the country’s only ocean-facing port and a vital gateway to the Indian Ocean. It lies about 950 km from the Afghanistan border and serves as a key trade hub for landlocked Central Asian countries.

Because of its strategic position, Chabahar is often called the “Golden Gate” to Central Asia. It strengthens India-Iran relations and provides India with an alternative and reliable route for trade and humanitarian supplies, avoiding political and logistical hurdles that come with using Pakistan’s land routes. With the US waiver now extended till 2026, India can continue its work at Chabahar without disruption, ensuring that the port remains a cornerstone of regional connectivity, cooperation, and economic growth.