India-Iran Seal Chabahar Port Deal, US Warns of Sanctions

The US warned of sanctions as India and Iran signed the Chabahar Port deal on Monday.

According to the posts on X by the Indian Embassy in Iran, the contract was signed by India Ports Global Ltd and Ports and Maritime Organisation of Iran in the presence of Ports, Shipping and Waterways Minister Sarbananda Sonowal for a long-term contract for the operation of the Shahid Beheshti Port terminal at Chabahar in Iran.

This deal enabled India to take over the management of an overseas port for the first time.

Located in Sistan-Balochistan province on the energy-rich Iran’s southern coast, the Chabahar port is being developed by India and Iran to boost regional trade, especially for its connectivity to Afghanistan.

India and Iran have projected the port as a key hub for the INSTC project. The INSTC is a 7,200-km-long multi-mode transport project for moving freight among India, Iran, Afghanistan, Armenia, Azerbaijan, Russia, Central Asia and Europe.

As India signed this 10-year contract with Iran, the US has warned of potential sanctions risk. The United States reiterated that “anyone considering business deals with Iran needs to be aware of the potential risk of sanctions.”

“We’re aware of these reports that Iran and India have signed a deal concerning the Chabahar port. I will let the government of India speak to its own foreign policy goals vis-a-vis the Chabahar port as well as its own bilateral relationship with Iran,” said Vedant Patel, deputy spokesperson of the US State Department.