New Delhi [India], February 13 (ANI): Amid heightened US-Iran tensions and a shifting regional landscape, Ambassador of Iran to India, Dr Mohammad Fathali, on Friday welcomed India's participation in the Chabahar port development, viewing it as a strategic project with significant potential for regional connectivity and trade expansion.

Speaking to ANI, Fathali described the development of Chabahar Port as a 'strategic project' and a symbol of constructive engagement between Tehran and New Delhi, asserting that bilateral cooperation will continue despite sanctions pressures and regional security tensions.

'Iran considers the development of Chabahar Port a strategic project and a symbol of constructive cooperation between the two countries. Chabahar has significant potential for regional connectivity and trade expansion,' he said.

This comes after the US deployed a second aircraft carrier, the USS Gerald R. Ford, on Friday to join the USS Abraham Lincoln in the Persian Gulf/Arabian Sea.

Following the recent Indian budget, which slashed port funding to zero, Fathali remains diplomatic. Despite sanctions and security tensions, Iran seeks to continue and expand bilateral economic cooperation with India in energy, transit, trade, and technology, based on mutual interests.

'The Islamic Republic of Iran welcomes the continuation and expansion of economic cooperation with India and believes there are many opportunities in energy, transit, trade, and technology. Despite sanctions and security tensions, bilateral cooperation will continue based on mutual interests,' Fathali said.

Notably, the Chabahar Port project was conceptualised to provide much-needed connectivity to Afghanistan for its reconstruction and economic development, and to boost trade and economic linkages with Central Asia.

An Indian company, India Ports Global Limited (IPGL), through its wholly owned subsidiary, India Ports Global Chabahar Free Zone (IPGCFZ), started operating the port in 2018.

On 13 May 2024, IPGL signed a ten-year contract with the Ports and Maritime Organisation of the Islamic Republic of Iran to equip and operate the Shahid Beheshti Terminal at Chabahar Port. Under the contract, India has fulfilled its commitment to contribute USD 120 million toward the procurement of port equipment.

On 16 September 2025, the US State Department revoked the sanctions exception issued in 2018 under the Iran Freedom and Counter Proliferation Act of 2012 for Afghanistan's reconstruction and economic development, effective 29 September 2025.

Following discussions with the US side, the US issued guidance extending the conditional sanctions waiver until 26 April 2026. The Government of India remains engaged with all concerned in order to address the implications of these developments.

India said last week that it is engaging with the United States to ensure that work linked to India's projects at Iran's Chabahar Port continues under a time-bound sanctions waiver from Washington, which is set to expire on April 26 this year.

India is also monitoring developments regarding the 25 per cent additional tariffs announced by the United States on countries doing business with Iran.

US President Donald Trump posted on Truth Social earlier this month that any country doing business with Iran will face a 25 per cent tariff. The tariff will be applicable on 'any and all business being done with the United States of America and is effective immediately,' Trump said.

In response to a query, Jaiswal said that India-Iran bilateral trade stands at USD 1.6 billion, with exports to Iran at USD 1.2 billion and imports at USD 0.4 billion. (ANI)