The United States’ State Department on Tuesday said it will closely examine the Chabahar port project, which India will develop having signed a deal with Iran. US senators questioned whether the agreement violated international sanctions, Reuters reported.

Assistant Secretary of State for South and Central Asian Affairs Nisha Desai Biswal said the US has “been very clear with Indians” about restricting their dealings with Iran, and they will now look closely at India’s Chabahar announcement.

Prime Minister Narendra Modi has pledged up to $500 million (approximately Rs 3,368 crore) while signing the deal on the Chabahar port, which lies in a free trade zone and will be of great strategic value. The deal was inked during Modi's visit to Tehran on Monday. India will build and develop the port, which will give it access to Afghanistan, Russia and Europe without having to go through Pakistan.

While the West lifted economic sanctions against Iran in January this year after it vowed to limit its nuclear ambitions, certain trade restrictions are still applicable, such as those related to issues of terrorism and human rights. However, Biswas said it appeared as though India's agreement with the West Asian country was mainly related to economics and energy matters.