US grants Iran a 60-day sanctions waiver after initial Switzerland peace talks.
Trump warns Washington will respond if Iran fails to comply with the interim agreement.
Deal includes steps on Lebanon ceasefire efforts, nuclear inspections, and maritime security.
The United States on Monday granted Iran a 60-day sanctions waiver following the first talks held under a newly signed interim peace agreement, while President Donald Trump warned he would respond if Tehran failed to uphold its commitments.
The waiver, announced by the U.S. Treasury as the first of several steps envisaged under the agreement to provide economic relief to Iran, came after U.S. and Iranian officials met in Switzerland to begin work on a permanent deal. According to Reuters, the two sides agreed on a roadmap towards a final agreement within 60 days, alongside measures aimed at reducing tensions in Lebanon and safeguarding commercial shipping through the Strait of Hormuz.
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 it had begun discussions on its nuclear programme.
The talks took place at the Qatari-owned Swiss mountain resort of Buergenstock, where the two sides, seeking to build on the memorandum of understanding signed last week, agreed on a framework for future negotiations. Mediators Pakistan and Qatar said the roadmap was intended to lead to a permanent agreement within 60 days.
The parties also agreed on a mechanism to end fighting in Lebanon between U.S. ally Israel and Iran-aligned Hezbollah, and established a communications line to help ensure safe passage for commercial ships through the Strait of Hormuz and avoid conflict in the strategic waterway.
In the first of several measures designed to provide economic relief, the U.S. Treasury announced a sanctions waiver until August 21, allowing Tehran to sell oil and related products and receive payment for them.
Officials reported a sustained lull in fighting in Lebanon under the broader agreement aimed at ending hostilities across the region. Israel, however, said it would maintain a security zone in southern Lebanon and continue to act to "neutralise" threats against Israeli soldiers and citizens.
Tanker traffic through Hormuz began to recover on Monday, while Oman's foreign minister reaffirmed his country's commitment to international law and toll-free safe passage during negotiations with Iran over administering the vital waterway.
According to Reuters, U.S.-Israeli attacks on Iran and Israeli strikes in Lebanon have killed thousands of people and displaced millions. The conflict has also unsettled global markets and pushed up oil prices. Crude prices extended losses on Tuesday after settling 3% lower on Monday.
Israel was not a party to the peace agreement but agreed on Friday to a new ceasefire in Lebanon. Although intense fighting continued for another day, Lebanese officials said violence had eased since Saturday night.
Israel and Lebanon were due to begin a new round of talks in Washington on Tuesday, with Beirut determined to pursue direct negotiations even as they risk being 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 establish mechanisms to deal with frozen Iranian assets 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, Iranian 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 United States and Israel launched a first round of air strikes last year, and suspended them entirely when war broke out in February. Tehran says its nuclear programme 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 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 developed a process under which the United States and Qatar would control Iranian funds once they were 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 that at least some of the remaining frozen funds could be used to purchase other non-sanctioned goods, Iran's Tasnim news agency reported.
Reuters reported that technical talks were due to continue for the rest of the week.
(With inputs from Reuters)
