This decision, announced on Tuesday, under the Iran Freedom and Counter-Proliferation Act (IFCA), is a part of Washington's "maximum pressure" campaign against Tehran and it takes effect from September 29. In 2024, India and Iran signed a deal that allows India to equip and operate the Shahid Beheshti terminal at Chabahar port for the next decade. The port was conceived as a strategic hub for the International North-South Transport Corridor (INSTC), developed by India, Iran, and Russia as an alternative shipping route to the Suez Canal. A few days after the February announcement, India pledged continued support for its joint project with Iran at Chabahar Port. He added that the development of the Chabahar deepwater port is a key example of the two countries' "shared vision for mutual benefit through connectivity."