Rubio made the remarks on Wednesday during an interview with Brian Kilmeade, days after Prime Minister Narendra Modi met Iranian President Masoud Pezeshkian on the sidelines of the Shanghai Cooperation Organisation summit in Bishkek, Kyrgyzstan.
Asked whether the Modi-Pezeshkian meeting suggested India and Iran were moving towards a new trade arrangement, Rubio said he did not believe a trade deal was being negotiated. He acknowledged that countries formulate their own foreign policies and that many governments maintain contacts with Tehran.
“We’ve met with elements of the Iranian regime as well,” Rubio said, referring to contacts undertaken by Washington during discussions with Tehran. He then drew a distinction between diplomatic engagement and economic activity designed to circumvent US restrictions.
Rubio said President Donald Trump had made clear that no country should assist Iran in evading sanctions or create channels through which Tehran could earn revenue. He said Washington believes such funds could be used to support terrorism and efforts to develop a nuclear weapon.
“If countries decide to do that, then we’re going to have to sanction them too,” Rubio said.
The warning places renewed attention on India’s economic engagement with Iran after Modi and Pezeshkian met in Bishkek on August 31. India’s Prime Minister’s Office said the two leaders discussed bilateral ties and exchanged views on developments in West Asia.
Modi said after the meeting that the two sides wanted to expand and diversify their trade basket while strengthening their longstanding relationship across several sectors. He also reiterated India’s position that regional disputes should be resolved through dialogue and diplomacy.
The two leaders discussed the conflict in West Asia, with Modi expressing concern over escalating tensions and stressing the need for lasting peace and stability. He also called for freedom of navigation and commerce and said civilians, commercial shipping and seafarers should not be harmed.
Pezeshkian and Modi also discussed cooperation in multilateral organisations, including BRICS and the SCO. Modi said he looked forward to welcoming Pezeshkian to India for the BRICS summit.
Rubio’s comments come as Washington intensifies economic pressure on Tehran. The Trump administration launched what it calls “Operation Economic Outcast” on August 24, expanding sanctions exposure across areas including digital assets, technology, gold, aviation and shipping.
The US Treasury has said the measures are intended to cut Iran off from financial channels and increase secondary-sanctions risks for companies and other entities doing business with sanctioned Iranian interests. Washington has also targeted shipping, financial and procurement networks it says support Iran’s military and the Islamic Revolutionary Guard Corps.
The sanctions threat is not hypothetical for India-linked activity. On July 30, the US Treasury designated entities and individuals in countries including India over commercial support for Mahan Air, which Washington says assists the Revolutionary Guard. Treasury Secretary Scott Bessent said financial or commercial support for the airline helped sustain a terrorist enterprise. The action illustrated how US measures can reach firms beyond American jurisdiction under sanctions law.
US sanctions policy allows Washington in some circumstances to penalise foreign companies, financial institutions and individuals for transactions involving designated Iranian entities, even when those parties are based outside the United States.
India has continued to maintain diplomatic ties with Tehran while also developing a broad strategic and economic relationship with Washington. New Delhi has repeatedly argued for diplomacy in West Asia and has emphasised the importance of uninterrupted energy flows, commercial shipping and regional connectivity.
One focal point of India-Iran cooperation has been Chabahar port, which New Delhi views as an important gateway for trade with Afghanistan and Central Asia. The two countries signed a long-term contract covering operations at the Shahid Beheshti terminal in 2024.
