India's External Affairs Minister Subrahmanyam Jaishankar said on Wednesday that the agreement for India to manage the Chabahar port in Iran should be seen as beneficial for the whole region, cautioning against a "narrow view of it."

This statement was made after the United States threatened India with a "potential risk of sanctions" for nations engaging in business with Iran.

At a book launch in Kolkata, Jaishankar emphasized the importance of effective communication to highlight the port's broad benefits, stating, "It's a question of communicating, convincing, and getting people to understand, that this is actually for everyone's benefit. I don't think people should take a narrow view of it."

He also noted that the US had previously acknowledged the significant role of the Chabahar port, saying, "If you look at the US' own attitude towards the port in Chabahar, the US has been appreciative of the fact that Chabahar has a larger relevance... we will work at it," as reported by ANI.

In contrast, US Ambassador to India Eric Garcetti, in an interview with India Today TV, described Iran as a promoter of terrorism for attacking "Israel" in retaliation to the attack on its consulate, saying, "We are generally having sanctions, with some rare exceptions, where there's a strategic interest. But, most businesses should be aware of those risks of interacting with Iran as it exports terrorism, as it directly attacks another sovereign nation, as we saw recently."

US warns India of sanctions for Chabahar Port deal with Iran

After Iran and India inked a 10-year agreement regarding the operation of the Chabahar Port, the US Department of State's Deputy Spokesperson Vedant Patel warned on Monday of sanctions against India if New Delhi moves forward with the Chabahar port deal with Iran.

In a press brief, Patel said, "So we’re aware of these reports that Iran and India have signed a deal concerning the Chabahar port," adding, "I will just say, as it relates to the United States, US sanctions on Iran remain in place and we’ll continue to enforce them."

It is worth noting that Patel further stressed that "any entity, anyone considering business deals with Iran, they need to be aware of the potential risk that they are opening themselves up to and the potential risk of sanctions."

Exemption granted when in favor of US interests

In 2016, officials from Afghanistan, Iran, and India signed multiple agreements that secured New Delhi's investment in the development of the Chabahar port project. This port, complemented by a railway project, facilitates the transport of Indian products to Afghanistan and Central Asia, bypassing Pakistan, where border closures frequently occur due to political tensions with both New Delhi and Kabul. At the time, the US exempted India from sanctions over the deal with Iran.

Even in 2018, when the US exited the JCPOA and increased sanctions against Tehran, a US official stated that the Indian-supported Chabahar Port in southern Iran, situated on the Gulf of Oman, would be exempt from the latest US sanctions, allowing it to continue its operations and development.

In 2020, the US exited Afghanistan's Kabul under fire, and as such the development of Afghanistan no longer aligned with Washington's interests.

Yet on May 13, when asked, "So there’s not an exemption for this specifically?" Patel bluntly responded with a "No".

 Read more: India, Iran sign 10-year agreement to develop strategic Chabahar port