India and the US have started negotiations to extend the 180-day waiver by Washington on the purchase of Iranian crude in November.
Sources said the Trump administration wanted New Delhi to reduce crude purchase as a condition to continue with the waiver.
Crude oil imports from Iran have been on a decline since November last year on the back of fresh US sanctions against the west Asian country.
However, oil imports from Iran during April-January 2018-19 rose 16.3 per cent to 21.32 million tonnes, according to latest government data.
New Delhi and Tehran have signed bilateral agreements to settle oil trades through state-owned Uco Bank in Indian currency, which is not freely traded in international markets.
