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US Revokes India’s Chabahar Port Waiver Amid Stalled Trade Talks
Washington ends India’s waiver on Iran’s Chabahar Port, sanctions effective Sept 29. Trade talks in Delhi stall as US presses India on Russia oil & farm tariffs.
MH
by Muhammad Hashir
2025-09-18
US Revokes India’s Chabahar Port Waiver Amid Stalled Trade Talks

The United States has withdrawn the waiver granted to India for its operations at Iran’s Chabahar port, a decision expected to further strain New Delhi’s balancing act between Washington and Tehran.

According to the US State Department, the waiver—which had allowed India to continue its involvement in the strategically important port despite sanctions on Iran—will officially end on September 29, 2025. The move is part of Washington’s “maximum pressure” campaign on Tehran. Once in effect, sanctions will apply to all individuals and entities operating at Chabahar.

The decision comes at a delicate time, as the latest round of trade talks between India and the US in New Delhi concluded without progress. The American delegation was led by Brandon Lynch, while Rajesh Agarwal headed the Indian side. Both parties agreed to hold further meetings, but key issues remain unresolved.

Speaking after the talks, Indian Commerce Minister Sunil Barthwal said discussions with Washington are ongoing at multiple levels, but differences remain—particularly regarding India’s continued purchase of Russian oil. The US has been pressing India to scale back its imports from Moscow.

Barthwal also noted that Washington is demanding New Delhi reduce high tariffs on agricultural products, including milk and wheat, in order to move the stalled trade deal forward.

Meanwhile, US President Donald Trump and Indian Prime Minister Narendra Modi spoke directly for the first time since June 2025, with Trump calling Modi to congratulate him on his 75th birthday. The rare exchange has sparked debate in diplomatic circles, with some viewing it as a sign of continued strategic engagement despite growing economic and policy tensions.

The revocation of the Chabahar waiver marks a significant shift in US policy, as the port has long been considered vital for India’s access to Afghanistan and Central Asia, bypassing Pakistan. Analysts warn the move could complicate India’s regional connectivity projects and force New Delhi to recalibrate its approach in balancing relations with Washington, Tehran, and Moscow.
Tagged:

Iran

Sanctions

USIndia

Chabahar
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