Modi meets Rouhani: Key highlights of the bilateral meeting

The two leaders held the meeting on the sidelines of the 74th session of the UN General Assembly.

They also agreed to mark the 70th anniversary of the establishment of diplomatic relations in 2020.

"Noting that India and Iran shared old and civilisational ties, the two leaders positively assessed the progress in bilateral relations since their first meeting at Ufa in 2015. They especially mentioned operationalisation of Chabahar Port and noted its importance as the gateway to and for landlocked Afghanistan and the Central Asian region," the MEA said in an official statement.

"Prime Minister reiterated India's support for giving priority to diplomacy, dialogue and confidence-building in the interest of maintaining peace, security and stability in the Gulf region, which is of vital importance for India," the MEA statement added.

The meeting comes in the wake of Modi already meeting US President Donald Trump twice in the past few days, including Sunday's mega 'Howdy Modi!' event in Houston and a bilateral on Tuesday.

During his latest address at the UNGA, Trump tore into Iran and labelled it as one of the "greatest security threats facing peace-loving nations".

He also urged nations to not "subsidise Iran's bloodlust".

On Wednesday, the United States also sanctioned Chinese entities for transporting oil from Iran, as per the US Secretary of State Michael Pompeo.

Tensions between Iran and the US have been tense, especially after Trump pulled out from the Iran nuclear deal and reinstated tougher sanctions on Tehran.

The United States also refused to extend sanction waivers given to eight countries, including India, which allowed them to temporarily continue buying Iranian oil.

The waivers expired on May 2.