NEW DELHI — The United States has granted India a six-month sanctions waiver to operate Iran’s Chabahar Port, India’s Foreign Ministry confirmed Thursday, in a move expected to strengthen New Delhi’s regional trade ambitions and mark a tentative thaw in U.S.–India relations.
Foreign Ministry spokesperson Randhir Jaiswal said the exemption, which took effect Wednesday, will allow India to continue developing and running the strategic port on Iran’s southeastern Gulf of Oman coast. “We have been granted an exemption for a six-month period,” Jaiswal said, adding that India is also “continuing talks with the Trump administration on a bilateral trade deal.”
The Chabahar Port, jointly developed by India and Iran under a 10-year agreement signed last year, serves as a crucial gateway for Indian trade with Afghanistan and Central Asia, providing a route that bypasses Pakistan. Originally envisioned with a railway link into Afghanistan, the project aims to boost Kabul’s economy and reduce its dependency on Pakistan’s Karachi port.
The waiver signals a shift in Washington’s tone toward New Delhi. It follows U.S. President Donald Trump’s remarks earlier this week expressing interest in reaching a new trade deal with India — a notable turnaround after relations soured earlier this year when the U.S. doubled tariffs on Indian imports to 50% in retaliation for India’s continued purchases of Russian oil.
The decision comes amid India’s gradual reduction of Russian crude imports, following new U.S. sanctions imposed on Moscow’s top energy giants, Rosneft and Lukoil.
Washington had revoked the previous Chabahar waiver in 2024 as part of its “maximum pressure” campaign on Iran over its nuclear and ballistic missile activities. Analysts say the renewed exemption reflects a pragmatic recognition of India’s role in stabilizing trade routes in South and Central Asia, particularly as tensions rise elsewhere in the region.
An Indian official, speaking anonymously, confirmed that the U.S. waiver had come into effect this week. The U.S. embassy in New Delhi has not yet commented on the development.
With the waiver reinstated and trade talks back on track, the move is being seen as a diplomatic breakthrough that could reshape India’s connectivity and energy strategies — and restore momentum to its ties with Washington.