The White House announced on Thursday that the exemption, in place since 2018, will end on September 29, Press TV reported.
The waiver had allowed India to develop the Shahid Beheshti terminal at Chabahar, seen as a key gateway to Afghanistan and Central Asia. With its withdrawal, entities involved in the project may now face penalties.
US State Department spokesperson Thomas Pigott said the decision was consistent with the Trump administration's so-called “maximum pressure” policy. He said that the revocation means any person or company engaged in the port’s operation could be exposed to sanctions.
Located in Chabahar, the port gives India access to Afghanistan and beyond, while also feeding into larger connectivity schemes such as the International North-South Transport Corridor.
India has already provided equipment worth $25 million, shipped food supplies through the port, and, in May 2024, signed a 10-year agreement to operate it. Under that deal, India pledged $120 million in investment and offered an additional $250 million credit line for infrastructure upgrades.
The waiver was originally granted in recognition of the port’s importance for stabilizing Afghanistan and facilitating humanitarian shipments.
Iran, meanwhile, has long slammed Washington’s reliance on sanctions. Officials in Tehran describe the approach as an “addiction” that has persisted since the 1979 revolution, with various Iranian entities repeatedly targeted under shifting pretexts.
Meanwhile, the sanction comes as tensions between New Delhi and Washington have already been rising under the Trump administration. Earlier this year, the White House imposed 50 percent tariffs on Indian goods, doubling an earlier rate.
