“I think as a friend [of the U.S.] India should decide whether [Iran] is a country they want to continue doing business with,” she said adding that her conversation with Mr. Modi had been a “constructive” one. The comments by Ms. Haley appear to be a part of a concerted campaign by the U.S. to ensure that India, Iran’s second biggest oil-importer after China, cuts its oil trade.

This is will prove especially tricky since New Delhi had committed to raising its imports from Tehran by as much 25% after a visit by Iranian President Rouhani in February this year. The U.S. strictures follow President Trump’s decision in May to pull out of the Joint Comprehensive Plan of Action (JCPOA) multilateral nuclear deal and subsequently bring in the Countering America's Adversaries Through Sanctions Act ( CAATSA) law that sanctions countries dealing with the Washington’s “adversaries”.

On Wednesday, a senior U.S. State Department official had clarified that India must comply with the U.S. sanctions against Iran and bring oil imports to “zero” by its November 4 deadline. “We have seen the statement made by the State Department official,” MEA spokesperson Raveesh Kumar said. “The statement was not India specific and applies to all countries.”