Washington: The Trump administration has announced the revocation of India’s waiver from US sanctions on Iran’s Chabahar Port, ending a special exemption granted in 2018 and dealing a setback to New Delhi’s strategic investment in the project. The waiver will officially lapse on September 29, according to a statement issued by the US State Department on Tuesday.

The decision, tied to Washington’s “maximum pressure” campaign against Tehran, means operators of Chabahar Port or those engaging in related activities could now face sanctions under the Iran Freedom and Counter-Proliferation Act (IFCA). Principal Deputy Spokesperson Thomas Pigott said the exemption for Afghanistan reconstruction and regional development projects is being withdrawn to align fully with President Trump’s policy of isolating the Iranian regime.

The State Department also announced fresh measures against Iran’s financial network, designating entities and individuals in Hong Kong and the UAE accused of facilitating oil sales that directed proceeds to Iran’s Revolutionary Guard Corps and Defence Ministry. These funds, Washington said, were being used to arm Tehran’s proxies and bolster weapons programs threatening US and allied forces.

The step marks the fourth round of sanctions targeting Iran’s shadow banking operations since 2017 and is being enforced under counterterrorism authority E.O. 13224. Officials stressed it was part of broader efforts to cut Tehran’s access to international financing and curb its regional influence.

For India, the move could complicate its 10-year agreement signed in 2024 with Iran, giving Indian Ports Global Ltd. (IPGL) operational control of Chabahar’s Shahid Beheshti terminal. The strategically important port, located in southeastern Iran near Pakistan’s Chinese-backed Gwadar Port, has been central to India’s regional connectivity plans, particularly for trade with Afghanistan and Central Asia.

With inputs from ANI