On October 30, the Indian Ministry of External Affairs announced that the United States had granted India a six-month extension to the sanctions waiver for operations at Iran’s Chabahar Port. Issued under the provisions of the Iran Freedom and Counter-Proliferation Act (IFCA), the waiver allows India to continue developing and utilizing the port without attracting secondary U.S. sanctions.

The decision comes amid New Delhi’s renewed efforts to strengthen connectivity with Afghanistan through the Chabahar route. In May 2024, India’s Indian Ports Global Limited (IPGL) and Iran’s Ports and Maritime Organization signed a 10-year agreement involving a $120 million investment by IPGL for the operation of the Shahid Beheshti Terminal. The deal, however, drew concern from the outgoing Biden administration, which cautioned against deepening commercial engagement with Tehran.

This is not the first time India has secured such exemptions. Successive U.S. administrations have recognized the Chabahar project’s strategic importance in promoting regional connectivity and stability in Afghanistan, providing India limited operational flexibility despite the broader sanctions regime on Iran.

Strategically, the waiver remains crucial for maintaining India’s access to Afghanistan through an alternative corridor that bypasses Pakistan. The timing is significant: New Delhi has been cautiously expanding its engagement with the Taliban-led government, even as Islamabad’s ties with Kabul deteriorate. Pakistan has accused the Taliban of sheltering the Tehreek-e-Taliban Pakistan (TTP), a charge Kabul denies, asserting that the TTP issue is an internal matter for Pakistan.

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