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The recent agreement between India and Iran to develop the Chabahar deep water port has raised concerns about potential US sanctions. The US$370 million project is seen as a counterweight to China's growing economic presence in the region. However, analysts believe that the threat of sanctions is unlikely to deter India from moving forward with the deal. The agreement aims to boost trade with Central Asia and bypass Pakistan's Gwadar Port, a key project under China's Belt and Road Initiative. The US has warned about the potential risk of sanctions for anyone considering business deals with Iran, but observers believe that the US is unlikely to derail the agreement at this time. India's involvement in Chabahar began in 2016 and is seen as an alternative trade route to Afghanistan and Central Asia. Indian officials have emphasized the importance of the project and are working to convince the US of its significance. Despite the threat of sanctions, analysts believe that the US is unlikely to take action before the upcoming elections.
