The U.S. Reacts As India Expands Maritime Reach with Chabahar Port

India has taken a significant step towards creating a stronghold in Central Asia as it signed a 10-year contract to operate the strategically vital Chabahar port in Iran yesterday. The agreement between India and Iran aims to develop and equip the Shahid Beheshti terminal at Chabahar Port. Reacting to this development, the U.S. State Department Deputy Spokesperson Vedant Patel warned India of the possible sanctions.

Patel said that the U.S. is aware of the business dealings between India and Iran, and if the former has decided to go ahead with the agreement, despite the potential risks of sanctions highlighted by the U.S., it should be ready to face the risks that come along. Nonetheless, India’s agreement with Iran emphasizes its commitment to regional connectivity and trade ties.

“Any entity, anyone considering business deals with Iran, they need to be aware of the potential risk they are opening themselves up to, potential risk of sanctions,”

Vedant Patel , U.S. State Department Deputy Spokesperson

The spokesperson refrained from commenting on India’s foreign policy objectives, however, did underscore that U.S. sanctions on Iran still exist and any country getting into business with Iran makes itself vulnerable to the risk of such sanctions.

The signing of this agreement is seen as a significant milestone in strengthening India’s foothold in the region and boosting its maritime trade capabilities. The pact replaces previous one-year contracts and is expected to provide a stable framework for long-term operations at the Chabahar port.

Representatives from India, Iran, and Afghanistan gathered in Tehran to formalize the handover of control to India Ports Global Limited (IPGL), a state-owned entity, marking a crucial development in regional connectivity and trade facilitation.

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