PM Modi Meets Iran President, Discusses Trade Expansion Amid US Sanctions Threat

Prime Minister Narendra Modi and Iranian President Masoud Pezeshkian on Monday discussed expanding and diversifying bilateral trade.

The situation in West Asia and the safety of commercial shipping during a meeting on the sidelines of the Shanghai Cooperation Organisation (SCO) summit in Bishkek.

The meeting came days after the US warned that countries and companies engaging economically with Iran could face penalties, as the Donald Trump administration stepped up efforts to isolate Tehran financially.

US Treasury Secretary Scott Bessent described Washington’s campaign as an “economic D-Day”, warning that those continuing to do business with Iran could face secondary sanctions and risk losing access to the dollar-based financial system.

Against this backdrop, PM Modi and Pezeshkian explored ways to broaden the India-Iran trade basket while also discussing the escalating tensions in West Asia.

“Met President Masoud Pezeshkian in Bishkek. Reiterated our commitment to strengthening India’s long standing friendship with Iran across diverse sectors,” Modi said in a social media post.

“We want to expand and diversify our trade basket in the times to come. We had a discussion on the prevailing situation in the region. India will continue to support all efforts aimed at ensuring lasting peace,” he added.

The Ministry of External Affairs said the two leaders reviewed bilateral ties and exchanged views on the evolving situation in West Asia.

INDIA RAISES CONCERNS OVER SEAFARERS’ SAFETY

Modi expressed concern over rising tensions in the region and reiterated India’s position that all disputes must be resolved through dialogue and diplomacy.

He also called for sustained efforts to ensure lasting peace and stability and stressed the need to safeguard freedom of navigation and commerce.

“Civilians and civilian infrastructure, including commercial shipping and seafarers must not be harmed under any circumstances,” the MEA said.

The issue has gained significance amid continuing disruptions and security risks to commercial shipping and maritime traffic in the region.

IRAN PUSHES BACK AGAINST US PRESSURE

Iran rejected the latest US pressure campaign, with its Foreign Ministry describing the sanctions as a threat to international law and the UN Charter.

“No honourable state that values its sovereignty and national interests will accept the normalisation of such gross lawlessness and systematic bullying,” it said.

Iranian Economy Minister Ali Madanizadeh said Tehran was fully prepared to withstand the measures and had drawn up a two-year plan to counter their impact.

Parliament Speaker Mohammad Baqer Ghalibaf also dismissed US threats against countries trading with Iran, saying Washington’s attempts to pressure Tehran’s partners would not succeed.

He said Iran’s trading partners had conveyed that they did not consider the US threats credible and argued that Washington was itself paying an economic price for its sanctions campaign.

PEZESHKIAN SEEKS INDIA’S SUPPORT FOR PEACE

According to an Iranian readout, Pezeshkian thanked India for its support and cooperation during the recent war and urged New Delhi to play a greater role in diplomatic efforts to restore peace and security in West Asia.

He said Iran had consistently sought dialogue and negotiations but accused the US of choosing “the path of war, insecurity and imposing their will through force”.

Pezeshkian maintained that Tehran remained committed to its obligations under previous agreements and said Iran would continue efforts to reach an understanding despite what he described as Washington’s failure to honour its commitments.

He also urged India to use its regional and global influence, as well as its contacts with different parties, to help move West Asia away from “war and bloodshed” and back towards dialogue.

IRAN SEEKS DEEPER TIES WITH INDIA

The Iranian President said Tehran was ready to deepen cooperation with India across political, economic, scientific and cultural sectors.

“Iran and India possess extensive capacities for expanding cooperation in political, economic, scientific, cultural and other areas of mutual interest,” he said, adding that stronger bilateral engagement could help both countries counter the impact of sanctions.

Pezeshkian also said US and Israeli pressure would not prevent Iran from expanding ties with other countries and reaffirmed Tehran’s willingness to strengthen cooperation with India.

OIL MARKET CONCERNS EASE

The shift from direct military confrontation towards economic pressure has eased some concerns in the oil market, according to a Reuters report.

Ole Hansen, head of commodity strategy at Saxo Bank, said Washington’s latest sanctions package was less aggressive than some traders had expected.

The renewed focus on economic measures has also fuelled hopes of a possible return to negotiations between Washington and Tehran.

However, analysts cautioned that the sharp decline in oil prices could reverse quickly if tensions escalate again or Iran targets US military installations in the region.

The conflict began after the US and Israel launched strikes against Iran in late February. More recently, Iran and Oman have discussed a proposal for a joint temporary navigational corridor through the Strait of Hormuz and plans to clear mines from the strategic waterway.

MODI INVITES PEZESHKIAN TO BRICS SUMMIT

Modi reiterated India’s readiness to work closely with Iran through multilateral platforms, including BRICS and the SCO.

He also said he looked forward to welcoming Pezeshkian to India for the upcoming BRICS Summit, according to the MEA.

MODI MEETS ARMENIAN PRIME MINISTER

Separately, Modi met Armenian Prime Minister Nikol Pashinyan on the sidelines of the SCO summit.

“A wonderful meeting with Prime Minister of Armenia, Mr Nikol Pashinyan on the sidelines of the SCO Summit in Bishkek,” Modi said.

He said India and Armenia were set to expand cooperation in defence, IT, space, education and pharmaceuticals, while also working to deepen trade and investment ties.