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Indian Prime Minister Narendra Modi met with Iranian President Masoud Pezeshkian during the Shanghai Cooperation Organization summit in Kyrgyzstan. This meeting comes amid escalating U.S. sanctions on Iran, particularly through "Operation Economic Outcast," which threatens secondary sanctions against countries conducting business with Iran. Modi's meeting with Pezeshkian is significant as it marks their first interaction since the outbreak of war six months ago.
During the meeting, Pezeshkian urged Modi to leverage India's extensive contacts to help de-escalate tensions and return to dialogue, thanking Modi for India's support of Tehran. Modi reiterated India's commitment to strengthening its longstanding friendship with Iran and expanding trade between the two nations. Analysts suggest this meeting signals Modi's intent to resist U.S. pressure regarding Iran, as India has significant commercial and strategic interests in the country.
India has been one of Iran's top trading partners, although bilateral trade has declined since its peak in 2018-19. Indian exports to Iran primarily consist of goods eligible for humanitarian exemptions, such as pharmaceuticals, while India resumed importing Iranian crude oil after a seven-year hiatus. However, U.S. sanctions have already led to penalties against Indian entities linked to Iranian oil trade, complicating India's economic relationship with Iran. The U.S. continues to emphasize the need for a strategic partnership with India, particularly in countering China's influence, but the evolving situation with Iran could test this relationship.