Washington first granted the waiver in 2018 to give Afghanistan secure access to regional markets and support its reconstruction. But the State Department said the exemption no longer fits with the Biden administration’s “maximum pressure” campaign against Tehran. Companies and institutions using the port now risk US penalties.
India signed a 10-year agreement with Iran in 2024 to operate and expand Chabahar, located in south-eastern Iran. Since 2018, New Delhi has overseen its development, investing more than $120 million. Plans include boosting annual capacity to 500,000 containers and connecting the port to Iran’s rail network by 2026.
For Afghanistan, Chabahar has been a lifeline, enabling trade with India and other markets without relying on Pakistan, which has frequently blocked Afghan goods at its borders.
The waiver’s removal leaves New Delhi exposed to US sanctions and jeopardises Chabahar’s role as a counterweight to Pakistan’s Chinese-backed Gwadar Port. For Afghanistan, it risks renewed dependence on volatile Pakistani routes at a time of strained ties with Islamabad.
Analysts warn the US decision could seriously disrupt Afghanistan’s already fragile transit access, undermining its ability to import and export essential goods.