Vedant Patel, the Principal Deputy Spokesperson for the US State Department, acknowledged the deal but emphasized that US sanctions on Iran are still in place and will be enforced. He stated that entities considering business with Iran should be aware of the potential risks of sanctions.

The Chabahar Port deal, signed by Indian Ports Global Limited (IPGL) and Iran’s Port & Maritime Organisation (PMO), is a significant step in regional connectivity.

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The agreement allows IPGL to equip and operate the Shahid-Beheshti port within the Chabahar Port Development Project for ten years, with an investment of about $120 million from India.

This agreement strengthens India-Iran relations and enhances regional trade links. The Chabahar Port is vital for India's access to Afghanistan, Central Asia, and Eurasia, offering an alternative route that bypasses Pakistan. There are also plans to integrate the port with the International North-South Transport Corridor (INSTC), linking India to Russia via Iran.

Despite the US warning, India’s relationship with the US remains strong, characterized by shared interests and a personal bond between Prime Minister Narendra Modi and President Joe Biden.