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Trump ends Iran's Chabahar port concessions; how will India suffer? Read the inside story here

As part of its strategy to increase economic pressure on Iran, the US has revoked the sanctions exemption granted to Chabahar Port. Any operations or business related to the port now face the risk of sanctions. 

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Edited By: Vinay
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Trump, Iran

International News: The US has made a significant decision regarding Iran's Chabahar Port. On Tuesday, the US State Department announced that it was revoking a special exception granted in 2018 that allowed the port to be used for reconstruction and economic development in Afghanistan.

This decision will be effective from September 29, 2025 and after this, any institution or person involved in any operation or activity related to Chabahar Port may face sanctions.

America's strictness and targeting Iran

The US says Iran continues to launder money through its oil trade and financial networks. According to the State Department, several companies and individuals in Hong Kong and the United Arab Emirates have recently been identified as facilitating the sale of Iranian oil. This money was going to Iran's Islamic Revolutionary Guard Corps (IRGC-QF) and Ministry of Defense (MODAFL), which are notorious for their support of regional terrorist organizations and weapons programs.

Impact on India and Afghanistan

India has developed the Chabahar Port as a strategic project to provide direct access to Afghanistan and Central Asia, bypassing Pakistan. This port is considered crucial not only for India-Afghanistan trade but also for connectivity throughout the region. This move by the US could impact India's regional strategy and directly impact Afghanistan's economic development.

US statements and policy

The US State Department has clearly stated in its statement that as long as Iran continues to use its illicit resources to attack the US and its allies, promote terrorism, and engage in destabilizing activities, the US will take every possible action to hold Iran accountable. This is why projects like the Chabahar Port are now also being targeted.

Future challenges

Chabahar Port was previously considered a symbol of shared interests between India, Iran, and Afghanistan. However, in the new environment of sanctions, investment and business activities there could become risky. Experts believe this decision will force India to reconsider its diplomatic and economic options. Furthermore, this situation could pose challenges to Afghanistan's economy and regional stability.

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