The United States has exempted India from imposition of certain sanctions for the development of the strategically-located Chabahar Port in Iran, along with the construction of the railway line connecting it with Afghanistan.
The decision by the Trump administration is being seen as a recognition by Washington of India's major role in the development of the port on the Gulf of Oman, which is of immense strategic importance for the reconstruction of war-torn Afghanistan.
A State Department spokesperson told PTI in Washington that after extensive consideration, the Secretary of State Mike Pompeo has
provided for an exception from imposition of certain sanctions.
The US on Monday imposed the toughest ever sanctions on Iran. The sanctions cover Iran's banking and energy sectors and reinstate penalties for countries and companies in Europe, Asia and elsewhere that do not halt Iranian oil imports.
However, Secretary of State Mike Pompeo said that eight countries including India were temporarily allowed to continue buying Iranian oil as they showed significant reduction in oil purchase from the Persian Gulf country.