NEW DELHI — India's prime minister insists that diplomacy is the best way to deal with Iran's suspected nuclear weapons program, resisting pressure from the United States and the European Union to curtail its trade with Tehran.

Washington and its allies want energy-starved India to curtail its dependence on Iranian oil, which New Delhi imports in immense quantities. Western countries believe Iran is using its oil revenues to develop nuclear weapons, but Tehran insists its nuclear program is purely for peaceful purposes.

Prime Minister Manmohan Singh told reporters Friday after meeting with the president of the European Union that he believes the nuclear issue "can be and should be resolved by giving maximum scope to diplomacy."