The US has warned of potential sanctions for any country considering business deals with Iran, hours after India signed a 10-year contract to operate a port with Tehran.

India had entered an agreement to develop the strategically important Chabahar port, close to Iran’s border with Pakistan, in 2016.

On Monday, it signed a long-term deal with Iran to develop it further.

India’s shipping minister called it a “historic moment in India-Iran ties”.

But the move may not go down well with the US, which has imposed more than 600 sanctions on Iranian-related entities over the past three years.

In a press briefing on Tuesday, the country’s State Department Deputy Spokesperson Vedant Patel said, when asked about the deal, that the US sanctions on Iran are still in place and that Washington would continue to enforce them.