A rattled US on Monday (May 13) warned Indian companies that they might attract American sanctions for their investments in Iran. A spokesman of the US State Department cried foul as New Delhi and Tehran inked a 10-year agreement over Iran’s Chabahar port earlier in the day. The deal paved the way for investments worth $120 million in the strategically located port along the Gulf of Oman.
“Any entity — anyone — concerned with business deals with Iran, they need to be aware of the potential risks that they’re opening themselves up to and the potential risk of sanctions,” State Department spokesman Vedant Patel told reporters.
India has been developing Chabahar port to get easy access to markets in Iran, Afghanistan and Central Asia via the Arabian Sea route, thus ending dependence on its arch-rival Pakistan.
However, the development of the port has faced several hurdles in the past, primarily because of US sanctions.
As India and Iran look forward to boosting their economic ties, the new threat from the US serves as a reminder of the impending challenges both nations may face.
Notably, by boosting investments in Chabahar, India also aims to neutralise Chinese presence in the region, a campaign that may also serve US interests in the long run.
As the US occupies itself in the ongoing conflicts in Ukraine and Gaza, it may need its partners more than ever to contain Chinese aggression in the Indian Ocean and beyond.
Earlier, Indian Foreign Minister S Jaishankar told reporters in Mumbai that the new lease deal will pave the way for newer investments in the port.
India plans to turn Chabahar port into a transit hub under the International North-South Transport Corridor (INSTC) to reach out to CIS (Commonwealth of Independent States) countries.
(With inputs from agencies)