US lifts Iran sanctions waiver as Trump warns Tehran to honor agreement

DUBAI — The United States has temporarily waived sanctions on Iran as part of ongoing diplomatic efforts to reach a broader agreement, while President Donald Trump warned Tehran that Washington would respond if Iran fails to meet its commitments under the emerging framework.

The 60-day sanctions waiver, which took effect Monday, allows Iran to sell oil and related products and receive payments. The measure follows initial discussions between U.S. and Iranian officials in Switzerland as both sides work toward addressing sanctions relief, nuclear issues, and regional security concerns.

The 60-day sanctions waiver, which began Monday, allows Iran to sell oil and related products and receive payments, marking the first major economic relief measure following initial talks between U.S. and Iranian officials in Switzerland. The U.S. Treasury issued the waiver as negotiators work toward a permanent agreement aimed at ending months of conflict and easing regional tensions.

U.S. Vice President JD Vance said the talks created a strong foundation for a final peace deal, including discussions on mechanisms for ceasefire enforcement, frozen Iranian assets, and nuclear oversight. However, Iran disputed some of Washington’s claims, saying negotiations had not yet begun on its nuclear program and denying that it had agreed to immediately allow the return of inspectors from the International Atomic Energy Agency (IAEA).

Iranian Foreign Ministry spokesperson Esmail Baghaei said Tuesday that Iranian officials did not meet IAEA Director General Rafael Grossi in Switzerland and that there were no plans for the nuclear watchdog to inspect facilities damaged during recent fighting.

The discussions in the Swiss mountain resort of Buergenstock followed an interim agreement reached last week after more than three months of conflict. Mediators from Pakistan and Qatar said the two sides agreed on a roadmap toward a permanent agreement within 60 days.

The initial framework also included efforts to reduce regional tensions, including a mechanism to stop fighting between Israel and Hezbollah in Lebanon and the creation of a communication channel to help protect commercial shipping through the Strait of Hormuz, a key route for global energy supplies.

Iran’s ambassador to the United Nations in Geneva, Ali Bahreini, said progress had been made and that two working groups would soon be created to focus on sanctions relief and nuclear issues. He said the initial agreement must first be fully implemented before discussions begin on the nuclear dossier and any future role for the IAEA.

Iranian President Masoud Pezeshkian said the success of the negotiations would depend on both sides honoring their commitments. In a statement posted on social media, he warned that comments outside the agreed framework could complicate the talks.

Trump later told reporters that Iran must follow the agreement or face consequences.

“If Iran doesn’t live up to their agreement, or if they’re not behaving, I will do what I have to do,” Trump said.

Earlier, Trump said Iran would agree to nuclear inspections to demonstrate what he described as “nuclear honesty.” Vance also said Iran had agreed to allow nuclear inspectors back into the country, a claim Tehran has not confirmed.

The dispute comes after Iran restricted cooperation with the IAEA following previous U.S. and Israeli airstrikes and suspended inspections entirely after renewed fighting. Tehran has consistently maintained that its nuclear program is for peaceful purposes.

Iranian Foreign Minister Abbas Araqchi said the agreement secured sanctions waivers for oil and petrochemical exports, the release of some frozen overseas assets, and the launch of reconstruction and development efforts.

The management of frozen Iranian funds remains another point of disagreement. Vance said U.S. envoy Jared Kushner proposed a system in which Washington and Qatar would oversee the use of released funds, including possible purchases of U.S. agricultural products such as corn, soybeans, and wheat.

Trump said the arrangement would benefit American farmers, but Iran’s Central Bank Governor Abdolnaser Hemmati disputed that claim, saying Iran would not be limited to such purchases and could use some funds for other non-sanctioned goods, according to Iran’s Tasnim news agency.

Meanwhile, regional tensions showed signs of easing. Officials reported a sustained reduction in fighting in Lebanon, although Israel said it would continue maintaining a security zone in southern Lebanon and act against threats to Israeli forces and civilians. Israel and Lebanon were scheduled to hold another round of talks in Washington.

Commercial tanker traffic through the Strait of Hormuz also increased, with Oman reaffirming its commitment to international law and safe passage during discussions with Iran over the administration of the strategic waterway.

The conflict has resulted in thousands of deaths and displaced millions of people, while also affecting global financial markets and energy prices. Oil prices declined further after falling about 3% on Monday following the announcement of the interim agreement.

The agreement faces political pressure in Washington, where rising fuel prices and concerns over Iran’s nuclear capabilities have become issues ahead of the November midterm elections. Some Republican lawmakers have continued to demand that Iran’s nuclear program be fully dismantled.

The next 60 days will be critical as Washington and Tehran attempt to turn the preliminary framework into a broader agreement. Major differences remain over nuclear inspections, sanctions relief, and enforcement measures, leaving the outcome of the talks uncertain.