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Several Iranian nuclear sites are located in Isfahan province, including Natanz, centerpiece of Iran’s uranium enrichment program.
The airspace and airport closures in Iran compounded a difficult week for Dubai-based carriers after record rainfall in the United Arab Emirates.
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External Affairs Minister S Jaishankar had demanded the immediate release of the Indians during a phone conversation with Iran's Foreign Minister.
Ann Tessa Joseph is among the 17 Indians onboard MSC Aries, a civilian cargo ship seized by Iran's Revolutionary Guard in the Strait of Hormuz on April 13.
Major Middle East airlines, including Emirates Airlines, Qatar Airways and Etihad Airways, said on Sunday they would resume operation in the region after cancelling or rerouting some flights.
Kerala Chief Minister Pinarayi Vijayan on Sunday sought the intervention of the external affairs ministry seeking the safe return of Indian nationals.
In an unprecedented attack, Iran and its proxies launched 330 missiles and drones on Israel on Saturday.
The threat of open warfare erupting between the arch Middle East foes and dragging in the United States has put the region on edge.