US warns of sanctions over India-Iran Chabahar Port Deal

The recent agreement between India and Iran regarding the operation of Chabahar Port has caught the attention of the US, with spokesperson Vedant Patel warning of potential sanctions for any country engaging in business deals with Iran.

The partnership between Indian Ports Global Limited and the Port & Maritime Organization of Iran allows for the operation of Shahid-Behesti port within the Chabahar Port Development Project for 10 years, with $120 million committed for port enhancements and a $250 million credit window for infrastructure projects.

Despite US sanctions on Iran, India remains committed to its foreign policy goals related to Chabahar Port, which serves as a vital gateway to landlocked Afghanistan and Central Asia. The joint project also aligns with the International North South Transport Corridor, aiming to connect the Indian Ocean to northern Europe.

India’s investments in Chabahar are seen as a strategic move to compete with China’s investments in Pakistan’s Gwadar region. While the US has historically interfered with India’s operations in Iran, the threat of sanctions continues as Iran criticizes Washington’s reliance on sanctions as a foreign policy tool.

Overall, the progress of Chabahar Port signifies a significant milestone in India-Iran relations and regional connectivity efforts.