US Secretary of State Marco Rubio has said he does not believe India and Iran are currently negotiating a trade deal. Rubio made the remarks while responding to a question about Prime Minister Narendra Modi’s meeting with Iranian President Masoud Pezeshkian on the sidelines of the 26th Shanghai Cooperation Organisation (SCO) Summit in Bishkek, Kyrgyzstan.
During an appearance on The Brian Kilmeade Show, Rubio was asked whether Modi’s meeting with Pezeshkian suggested that New Delhi and Tehran were working on a trade agreement.
“Well, I don’t think there’s a trade deal between India and Iran.” Rubio said. The US secretary of state stressed that every country has the right to decide its own foreign policy. He also acknowledged that several nations around the world continue to maintain diplomatic contacts with the Iranian government.
“Obviously, there are – countries all develop their own foreign policy, and many countries around the world talk to the Iranian regime,” Rubio said.
Rubio Warns Against Sanctions Evasion
While recognising that countries can maintain relations with Iran, Rubio warned governments against helping Tehran bypass US sanctions. He said the Donald Trump administration had made its position clear on the issue. According to Rubio, Washington would oppose any arrangement that helps Iran earn money by avoiding American sanctions.
“I think what ultimately happens, though, is – and the President [Donald Trump] has been very clear – is no country should be helping Iran evade sanctions,” Rubio said. Rubio also accused Tehran of using its revenue to support activities that the US considers a threat to regional and international security.
“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,” he added. He further warned that countries helping Iran bypass sanctions could themselves face penalties from Washington.
“And if countries decide to do that, then we’re going to have to sanction them too,” the US secretary of state said.
Modi Signals Push for Stronger India-Iran Trade
Prime Minister Narendra Modi, however, indicated that India wants to strengthen its long-standing relationship with Iran and expand economic cooperation between the two countries. Following his meeting with Pezeshkian in Bishkek, Modi said India wanted to increase bilateral trade and broaden the range of goods exchanged between the two nations.
“Met President Masoud Pezeshkian in Bishkek. Reiterated our commitment to strengthening India's long-standing friendship with Iran across diverse sectors. We want to expand and diversify our trade basket in the times to come,” PM Modi said on X following the meeting.
The two leaders also discussed the situation in the region. Modi reiterated India’s support for efforts aimed at promoting lasting peace and stability. The Ministry of External Affairs described the talks as “fruitful”. The two leaders reviewed bilateral relations between India and Iran and exchanged views on recent developments in West Asia.
India Calls for Dialogue and Diplomacy
MEA spokesperson Randhir Jaiswal said Modi repeated India’s long-standing position that regional disputes should be addressed through dialogue and diplomatic efforts.
“Prime Minister also underlined the need for continued efforts to ensure peace and stability in the region and for safeguarding freedom of navigation and commerce,” Jaiswal said. The discussions also included the security of commercial vessels, seafarers and civilians amid the continuing conflict in the Gulf region.
India and Iran also discussed cooperation through multilateral organisations and groupings, including BRICS and the SCO. Modi said he was looking forward to welcoming Pezeshkian to India for the upcoming BRICS Summit. The BRICS Summit is scheduled to be held in New Delhi from September 12 to September 13.
Iranian Foreign Minister Abbas Araghchi and other senior Iranian officials were also present during the meeting between Modi and Pezeshkian.
India Balances Iran Ties With US Pressure
The meeting comes at a time when India is seeking to maintain its long-standing relationship with Iran while dealing with growing geopolitical and economic pressure linked to US sanctions on Tehran.
While Rubio said Washington would act against countries that help Iran evade sanctions, Modi’s remarks highlighted India’s interest in expanding and diversifying its economic relationship with Tehran.
The contrasting statements underline the diplomatic challenge facing India as it seeks to protect its strategic interests and maintain relations with both Iran and the United States.