Will US sanction India for signing Chabahar Port deal with Iran?

Wasington, NT Bureau: The US has warned of potential sanctions for any country considering business deals with Iran, hours after India signed a 10-year contract to operate a port with Tehran. India had entered an agreement to develop the strategically important Chabahar port, close to Iran's border with Pakistan, in 2016.

On Monday, it signed a long-term deal with Iran to develop it further. India's shipping minister called it a "historic moment in India-Iran ties".

But the move may not go down well with the US, which has imposed more than 600 sanctions on Iranian-related entities.

In a press briefing, the country's State Department Deputy Spokesperson Vedant Patel said, when asked about the deal, that the US sanctions on Iran are still in place and that Washington would continue to enforce them.

"Any entity, anyone considering business deals with Iran - they need to be aware of the potential risks that they are opening themselves up to and the potential risk of sanctions," he said.

Why is Chabahar Port important for India?

The Chabahar Port is expected to serve as a crucial transit hub for trade with Afghanistan and other landlocked nations of Central Asia.

India has played a significant role in the development and operation of the Chabahar Port.