U.S. to slap sanctions on Chabahar Port operators from September 29

The Trump administration has said that individuals operating the Chabahar Port in Iran would invite sanctions beginning later this month.

The move is consistent with President Donald Trump’s maximum pressure policy to isolate the Iranian regime, State Department principal deputy spokesperson Thomas Pigott said in a statement earlier this week.

Located in Sistan-Balochistan province on the energy-rich Iran’s southern coast, Chabahar port is being developed by India and Iran to boost connectivity and trade ties.

“The Secretary of State has revoked the sanctions exception issued in 2018 under the Iran Freedom and Counter-Proliferation Act (IFCA) for Afghanistan reconstruction assistance and economic development, effective September 29, 2025. Once the revocation is effective, persons who operate the Chabahar Port or engage in other activities described in IFCA may expose themselves to sanctions under IFCA,” Mr. Pigott said.

The U.S. had exempted the Chabahar port project from sanctions in 2018, saying “the secretary has provided for an exception from the imposition of certain sanctions under the Iran Freedom and Counter-Proliferation Act of 2012 (IFCA) with respect to the development of Chabahar Port and the construction of an associated railway and for the shipment of non-sanctionable goods through the port for Afghanistan’s use, as well as Afghanistan’s continued imports of Iranian petroleum products.” However, with the new guideline, these exemptions will be removed.

India has been pushing for the Chabahar port project to boost regional trade, especially for its connectivity to Afghanistan.

The Chabahar port is also seen as a key hub for the International North-South Transport Corridor (INSTC) project. INSTC is a 7,200-km-long multi-mode transport project for moving freight among India, Iran, Afghanistan, Armenia, Azerbaijan, Russia, Central Asia and Europe.