The Trump administration has said that people operating the port of Iran will be banned from the end of this month. This decision will also have an impact on India which is developing a terminal at this strategic port.
Chabahar port is located in the Sistan-Balochistan province on the southern coast of Iran. India and Iran are developing it to increase trade and connectivity. US State Department chief Deputy Spokesperson Thomas Pigot said in a statement released earlier in the week that the 2018 order giving exemption in US sanctions is being canceled.
He said that this step is in line with President Donald Trump’s policy to put maximum pressure to isolate the Iranian regime. Pigot said, “The US Secretary of State has canceled the ban exemption issued in 2018 under the Iran Independence and Atomic Dissemination Act (IFCA) for Afghanistan reconstruction and economic development. The order will be effective from September 29, 2025.”
He said that after the ban has become effective, people can come under the purview of restrictions or involved in related activities. This decision of the US administration will also affect India as it is associated with the development of a terminal at the Chabahar port located in the Gulf of Oman. India signed a 10 -year contract on May 13, 2024 to operate the port.
This will help India increase trade with Central Asia. India proposed the development of this port in the year 2003 itself to provide an entrance to Afghanistan and Central Asia for Indian goods. For this, a road and railway project called International North-South Transport Corridor (INSTC) is to be built.
The 7,200 km long project is proposed to transport freight between India, Iran, Afghanistan, Armenia, Azerbaijan, Russia, Central Asia and Europe. However, due to the US sanctions imposed on Iran’s nuclear program, the pace of development of Chabahar port was very slow.
The US in 2018 exempted the Chabahar port project from restrictions. At that time it was said that this exemption is necessary for Afghanistan for supply of non-affected goods and import of petroleum products. However, this exemption will now end under the new policy of US administration. In 2023, India used Chabahar port to send a assistance of 20,000 tonnes of wheat to Afghanistan. Earlier in 2021, through this, Iran was also supplied to environmentally friendly pesticides.
