The U.S. State Department warns of potential sanctions risk for India’s new 10-year agreement with Iran on the Chabahar port development. Despite India’s previous exemption, the U.S. asserts no specific carve-out for this deal. India’s plans for substantial investments may face scrutiny if exemptions aren’t extended. The agreement follows years of operations at Chabahar, vital for trade with Afghanistan. India’s broader projects, including connectivity via the INSTC, may require fresh U.S. clearance, particularly given Afghanistan’s evolving dynamics. The impact on future dealings remains uncertain amid ongoing elections in both countries.