The United States has waived sanctions on Iran for 60 days following the first talks held under a newly brokered peace agreement, with President Donald Trump warning Tehran that Washington would respond if it failed to uphold its commitments.

The sanctions waiver took effect on Monday after negotiations between US and Iranian officials in Switzerland. Trump said he remained prepared to act if Iran failed to comply with the terms of the agreement.

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

US Vice President JD Vance described the discussions as productive, saying they had established a strong foundation for a permanent peace accord. However, Iran denied reports that nuclear issues had already been discussed during the talks.

The negotiations, held in the Swiss mountain resort of Buergenstock and mediated by Pakistan and Qatar, resulted in a roadmap aimed at securing a permanent agreement within 60 days.

The parties also agreed on measures to reduce tensions in the region, including a mechanism to end hostilities in Lebanon between Israel and Hezbollah. They further established a communications channel intended to ensure the safe passage of commercial vessels through the Strait of Hormuz and prevent military confrontations in the strategic waterway.

As part of the initial economic relief package, the US Treasury announced a sanctions waiver valid until August 21, allowing Iran to sell oil and related products and receive payment for those exports.

Officials reported a continued reduction in violence in Lebanon under the agreement, although Israel said it would maintain a security zone in southern Lebanon and continue efforts to “neutralise” threats against Israeli soldiers and citizens.

Shipping activity through the Strait of Hormuz increased on Monday, while Oman’s foreign minister reaffirmed his country’s commitment to international law and toll free navigation during ongoing discussions concerning administration of the key maritime route.

The conflict involving Iran, Israel and Lebanon has killed thousands of people, displaced millions and contributed to volatility in global energy markets. Oil prices continued to fall on Tuesday after declining by three percent the previous day.

Although Israel was not a party to the peace agreement, it agreed to a separate ceasefire in Lebanon on Friday. Lebanese officials said intense fighting largely subsided after Saturday night.

Israel and Lebanon were scheduled to begin a new round of talks in Washington on Tuesday, with Beirut pushing ahead with direct negotiations despite concerns that developments involving Iran and the United States could overshadow the process.

Vance maintained an optimistic outlook after the talks, stating that Tehran had agreed to permit nuclear inspectors access to the country and establish systems to manage frozen overseas assets and oversee ceasefire arrangements.

“We laid a very good foundation for a successful final deal,” he told reporters after participating in the discussions.

Iran’s Foreign Ministry spokesperson Esmaeil Baghaei, however, disputed those claims, telling the official IRNA news agency that Iran had neither discussed nuclear matters nor made any new commitments.

Trump also wrote on Truth Social that Iran would permit weapons inspections to ensure “nuclear honesty.”

Iran has significantly restricted inspections by the International Atomic Energy Agency since US and Israeli air strikes began last year and suspended them entirely after war broke out in February. Tehran continues to insist its nuclear programme is peaceful.

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

Vance said White House envoy Jared Kushner had proposed a framework under which the US and Qatar would oversee Iranian funds once released, with the money potentially being used to purchase American agricultural products.

“So, the money that we lift is going to go to our farmers,” Trump told reporters.

However, Iran’s Central Bank Governor Abdolnaser Hemmati rejected the suggestion that the funds would be restricted to US goods, saying some of the assets could be used to purchase other non sanctioned products, according to Iran’s Tasnim news agency.

Technical discussions between the parties are expected to continue throughout the week as negotiators work towards a permanent agreement. (Arise News)

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