US Secretary of State Marco Rubio on 3 September warned that any country helping Iran circumvent American sanctions could itself face penalties, while dismissing reports that India and Iran were moving toward a trade agreement. The remarks came in response to questions about Prime Minister Narendra Modi's recent meeting with Iranian officials and speculation about a bilateral trade deal.

Rubio Dismisses India-Iran Trade Deal Reports

Asked specifically about Modi's engagement with the Iranian President and the possibility of a trade arrangement, Rubio was direct. 'I don't think there's a trade deal between India and Iran,' he said in an interview with The Brian Kilmeade Show. He acknowledged that nations routinely pursue independent foreign policies and maintain their own channels with Tehran — noting that Washington itself had held contact with Iranian government representatives in various discussions.

'Countries all develop their own foreign policy, and many countries around the world talk to the Iranian regime,' Rubio said. 'We've met with elements of the Iranian regime as well, in terms of some of these discussions that have occurred and there's been contact with them.'

The Sanctions Warning

Despite acknowledging diplomatic realities, Rubio drew a firm line on sanctions compliance. He said President Donald Trump had made it unambiguously clear that no nation should help Tehran build revenue streams or bypass economic restrictions.

'No country should be out there helping them create mechanisms by which they can generate revenue that they will then use to sponsor terrorism and try to build a nuclear weapon,' Rubio said. 'And if countries decide to do that, then we're going to have to sanction them too.'

This comes amid intensifying US pressure on Iran under the Trump administration's 'maximum pressure' posture, which has sought to choke off Iranian oil exports and financial channels globally. Notably, secondary sanctions — penalties on third-party nations or entities doing business with a sanctioned country — have historically been one of Washington's most potent enforcement tools.

Nuclear Weapon: A Red Line

Rubio reiterated that preventing Iran from acquiring a nuclear weapon remained the central objective of the Trump administration's Iran policy. 'Iran will never be allowed to possess a nuclear weapon, certainly not as long as President Trump is in office,' he said.

He outlined a primarily economic approach to pressure, while explicitly reserving the military option. 'As long as they continue to endeavour or claim to want one, they're going to pay a price for it, and that price is going to be primarily economic,' Rubio said. 'But we reserve the right, as we said, to take military action when necessary — not just to protect ourselves but to prevent them from being able to threaten others as well.'

Strait of Hormuz and Iran's Alleged Proxy Financing

On the Strait of Hormuz, Rubio said Iran had continued firing at commercial vessels, while the United States had destroyed mines placed in the strategically critical waterway. 'The straits will remain open, and they will not be under Iranian control,' he said.

He also accused Tehran of channelling financial resources toward armed proxy groups rather than domestic welfare. 'They want money for two things — to sponsor terrorism and ultimately to have a nuclear weapon,' Rubio said. 'And we can't allow that to happen.'

India's Stakes: Chabahar and Beyond

India and Iran share longstanding diplomatic and commercial ties. India has been centrally involved in developing Iran's Chabahar port, which provides a strategic trade corridor to Afghanistan and Central Asia bypassing Pakistan. How Rubio's warning lands in New Delhi — and whether it affects India's Chabahar calculus — will be closely watched in the weeks ahead.