Chabahar Port Deal is posing a threat to the US sanctions and this is a question that needs to be answered

The US warned of potential sanctions risks after India signed a $370 million deal to operate Iran's Chabahar port for 10 years, highlighting tensions between India's strategic interests in Iran and ties with the US.

The United States has threatened the sanctions risk for any country that will be engaged in business deals with Iran, just hours after India signed the Chabahar port agreement for the next decade with Iran.

On Monday, Ports Global Limited (IPGL) of India and the Port & Maritime Organization of Iran signed a $370 million deal for the development and operation of the strategically located Chabahar port on the Gulf of Oman. Under the 10-year contract, India will invest $120 million directly plus the $250 million in financing for port infrastructure will be facilitated by India.

The Chabahar port has been the biggest bilateral project between India and Iran since the first agreement was signed in 2016. The port gives India sea-land access to Afghanistan and Central Asia which Pakistan doesn't have, through the port. Thus, up to now, India has sent more than 2 ships. The export of 5 million tonnes of wheat and 2,000 tonnes of pulses to Afghanistan through the Iranian port is planned.

On the contrary, the huge new investment could put India in a conflict with the United States, which has put the maximum pressure on Iranian entities under its sanctions campaign against Tehran's nuclear program and regional activities.

On Tuesday at the State Department, spokesperson Vedant Patel repeated that US sanctions are still in effect against Iran. "Any person or organization, who is looking for business deals with Iran - they should be aware of the potential risks that they are taking on and the possibility of sanctions," Patel said.

India has not yet officially declared its position on the US warning about the possible sanctions risk related to the Chabahar port deal. Indian officials have been saying that the agreement is a "historic moment" in India-Iran relations and will be the base for further economic cooperation between the two countries.

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The latest US sanctions threat symbolizes the difficult situation India is in between its strategic interests in Iran and its important alliance with the United States. What is the economic connection between India and Iran and how it affects the Indian foreign policy is still unknown.