US waives Iran sanctions, Trump says he will 'do what I have to' if Tehran misbehaves

U.S. President Donald Trump speaks as he signs executive orders in the Oval Office of the White House in Washington, June 22. AFP-Yonhap

BUERGENSTOCK, Switzerland/WASHINGTON — The United States waived sanctions on Iran for 60 days from Monday after the first talks under a nascent peace deal, with U.S. President Donald Trump saying he will "do what I have to do" if Iran does not stick to its side of the agreement.

U.S. Vice President JD Vance said talks with Iranian officials in Switzerland had laid a good foundation for a final peace deal, although Iran denied that it had begun discussions of its nuclear program.

The two sides, trying to build on the interim deal they signed last week, agreed a roadmap towards a permanent agreement within 60 days at the talks in the Qatari-owned Swiss mountain resort of Buergenstock, mediators Pakistan and Qatar said.

They also agreed on a mechanism to end fighting in Lebanon between U.S. ally Israel and Iran-aligned Hezbollah, and opened a communications line to help ensure safe passage for commercial ships through the Strait of Hormuz in order to avoid conflict in the strategic waterway.

In the first of several steps envisaged under the agreement to provide economic relief to Iran, the U.S. Treasury announced a waiver until August 21 on sanctions, allowing Tehran to sell oil and related products and receive payment for them.

Officials reported a sustained lull in fighting in Lebanon under the agreement aimed at ending hostilities across the region, even as Israel said it would maintain a security zone in southern Lebanon and continue to act to "neutralize" threats against Israeli soldiers and citizens.

Tanker traffic through Hormuz started to pick up on Monday, with the foreign minister of Oman affirming his country's commitment to international law and toll-free safe passage during negotiations with Iran over administering the vital waterway.

U.S.-Israeli attacks on Iran, and Israeli strikes in Lebanon have killed thousands of people and displaced millions. The Iran war has also shaken markets around the world and raised global oil prices. Crude prices extended losses on Tuesday after settling 3 percent lower on Monday.

Vance delivers upbeat assessment

Israel was not party to the peace agreement but on Friday it agreed a new ceasefire in Lebanon. Though intense fighting continued for another day, Lebanese officials said it had abated since Saturday night.

Israel and Lebanon were due to start a new round of talks in Washington on Tuesday, with Beirut determined to press ahead with direct negotiations even as they appear to be overshadowed by Iran's decision to make Lebanon part of its negotiations with the United States.

Vance, who has maintained an upbeat tone since the memorandum of understanding was signed, said Tehran had agreed to allow nuclear inspectors into the country, and to establish mechanisms to handle its assets frozen abroad and manage ceasefires.

"We laid a very good foundation for a successful final deal," he told reporters after taking part in the talks.

However, Iran's Foreign Ministry spokesperson Esmaeil Baghaei told the official IRNA news agency that Iran had not yet discussed nuclear issues or made new commitments.

Trump said in a post on Truth Social on Monday that Iran will agree to have weapons inspections to ensure "nuclear honesty."

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

Iran has limited inspections by the International Atomic Energy Agency since the U.S. and Israel launched a first round of air strikes last year, and suspended them entirely when war broke out in February. It says its nuclear program is peaceful.

Iranian Foreign Minister Abbas Araqchi said on social media that Tehran had secured waivers for oil and petrochemical exports, the release of some of its frozen assets abroad and the launch of a reconstruction and development plan for Iran.

Vance said White House envoy Jared Kushner, Trump's son-in-law, had come up with a process whereby the U.S. and Qatar would have control over Iranian funds when they are unfrozen, and the money could be spent on U.S. corn, soy and wheat.

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

However, Iran's Central Bank Governor Abdolnaser Hemmati said there was no such obligation and said at least some of the remaining frozen funds could be used to buy other non-sanctioned goods, Iran's Tasnim news agency reported.

Technical talks were due to continue for the rest of this week.