US considers sanctions following India-Iran port agreement

The US warned of sanctions for any nation pursuing economic dealings with Iran hours after India inked a 10-year port operation contract with Tehran.

In 2016, India agreed to develop the Chabahar port, strategically located near Iran's border with Pakistan.

On Monday, a significant long-term agreement was reached with Iran to develop the project further.

The shipping minister of India described the event as a significant milestone in the relationship between India and Iran.

However, the US might have not received the decision favorably, as they have imposed over 600 sanctions on Iran-related entities in the last three years.

During a press briefing on Tuesday, Vedant Patel, the Deputy Spokesperson of the State Department, addressed questions about the deal. Patel emphasized that the US sanctions on Iran remain in effect and that the enforcement of these sanctions will persist.

He emphasized that any individual or organization engaging in business transactions with Iran must be fully aware of the risks involved, including the possibility of facing sanctions.

India's response to the statement remains pending.

In late 2018, India assumed control of the port's operations. The port has established a new transit route, providing a crucial alternative for Indian goods and products to reach Afghanistan and Central Asia. 

The route bypasses the land route through Pakistan, which is significant considering the tense relationship between India and Pakistan, which are neighboring countries.

According to officials, 2.5 million tons of wheat and 2,000 tons of pulses have been successfully transported from India to Afghanistan via the Chabahar port.

Recently, the Indian Ports Global Limited (IPGL) and the Port & Maritime Organization of Iran have reportedly signed a long-term deal to develop a port. India's shipping ministry announced the deal on Monday.

According to Iran's Minister of Roads and Urban Development Mehrdad Bazrpash, IPGL has agreed to invest approximately $120 million and provide an additional $250 million in financing, bringing the contract's total value to $370 million.

According to India's Foreign Minister S Jaishankar, the deal is expected to facilitate more significant investments in the port.