ALSO READ | Iran: Indian Firm Takes Over Operations At Chabahar Port

The move comes days after the US announced new sanctions on Iran targeting its unmanned aerial vehicle production after its attack on Israel.

"We're aware of these reports that Iran and India have signed a deal concerning the Chabahar port. I will let the government of India speak to its own foreign policy goals vis-a-vis the Chabahar port as well as its own bilateral relationship with Iran," Vedant Patel, deputy spokesperson of the US State Department has said.

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Patel, however, also added it will let the government of India speak on its foreign policy goals.

What did US say on India-Iran Chabahar Port deal?

"We are aware of these reports that Iran and India have signed a deal concerning the Chabahar Port, I would let the government of India speak to its own foreign policy goals, vis-a-vis the Chabahar Port as well as its own bilateral relationship with Iran," Vedant Patel said in a presser.

“I would just say...US sanctions on Iran remain in place and we will continue to enforce them. Any entity, anyone considering business deals with Iran, they need to be aware of the potential risk they are opening themselves up to, potential risk of sanctions,” he added.

India-Iran Chabahar Port deal:

Indian Ports Global Limited (IPGL) has committed to further equipping and operating the port for the duration of the contract. At the end of the 10-year period, both sides would further extend their cooperation in Chabahar. IPGL will invest nearly USD 120 million in equipping the port. India has also offered an in-credit window equivalent to USD 250 million, for mutually identified projects aimed at improving Chabahar-related infrastructure.

This is the first time India will take over the management of an overseas port.