India wants to “expand and diversify” its trade relations with Iran, Prime Minister Narendra Modi Prime told Iranian President Masoud Pezeshkian on Monday, while also calling for freedom of navigation and the protection of seafarers amid the Middle East conflict.

”Reiterated our commitment to strengthening India’s long-standing friendship with Iran across diverse sectors,” Modi posted on X after meeting Pezeshkian on the sidelines of the Shanghai Cooperation Organization (SCO) summit in Kyrgyzstan’s capital, Bishkek, on Monday. “We want to expand and diversify our trade basket in the times to come.”

It was the first in-person meeting between the two leaders since the Middle East conflict, triggered by US-Israeli attacks on Iran, began in February. The Indian prime minister’s statement comes amid a campaign launched by the US Treasury Department to isolate Iran economically, building on Washington’s Operation Economic Outcast, a broad effort to sever Iran’s financial links around the world. The Treasury has said it will give countries timelines to shut down Iran-related activity, and entities that fail to comply face potential secondary-sanctions.

India is among Iran’s five largest trading partners, but bilateral trade has declined more than 90% from about $17 billion in 2018-19 to about $1.6 billion in the financial year ending March 2026. Indian exports to Iran are now limited mostly to goods exempted on humanitarian grounds.

Iran and the US traded attacks overnight Monday, the first time in over a month. Modi said he and the Iranian president discussed the prevailing situation in the Middle East, and that “India will continue to support all efforts aimed at ensuring lasting peace.”

The prime minister “expressed concern at the escalation of tensions” and “reiterated India’s consistent position that all issues must be resolved through dialogue and diplomacy,” the Indian Foreign Ministry said in a statement.

Modi also called for safeguarding the freedom of navigation and commerce and emphasized that civilians and civilian infrastructure, including commercial shipping and seafarers, must not be harmed under any circumstances. Ten Indian seafarers have died in attacks on commercial shipping around the Strait of Hormuz since the start of hostilities in February.

Modi also said he looked forward to welcoming Pezeshkian to India for the BRICS Summit in New Delhi in September. Iranian Foreign Minister Seyed Abbas Araghchi was also present during the meeting.