- Trump and Iranian President Pezeshkian signed an interim deal last week after three months of U.S.-Israeli strikes on Iran and retaliatory Iranian attacks
- Trump demands Iran allow "highest level Nuclear inspections long into the future (Infinity!!!)" and use unfrozen assets for U.S. food purchases
- Iran denies agreeing to nuclear inspections or allowing IAEA inspectors access to damaged facilities
- The 60-day sanctions waiver allows Iran to sell oil, with proceeds placed in escrow for humanitarian goods from American farmers
- Oil prices have dropped since the deal, but political pressure mounts on Trump as midterm elections approach over rising gas prices
Deal reached after three months of war
President Donald Trump issued a stark warning to Iran on Monday, stating he "will do what I have to do" if Tehran fails to adhere to the interim agreement signed last week after more than three months of open hostilities between the United States, Israel and Iran.
Trump and Iranian President Masoud Pezeshkian signed the interim deal June 22, following a cycle of escalation that began with joint U.S.-Israeli airstrikes targeting Iranian nuclear facilities, military bases and a uranium enrichment center. Those strikes killed at least a dozen senior Iranian commanders and scientists. Iran responded by firing dozens of ballistic missiles into Israel and attacking Gulf states hosting U.S. bases.
The conflict upended the Middle East, with Israeli strikes in Lebanon killing thousands and displacing millions. Global oil markets suffered shocks as Iran blockaded the Strait of Hormuz, pushing up prices and inflation worldwide.
Nuclear inspections dispute emerges
Trump said Tuesday that Iran had agreed to "highest level Nuclear inspections long into the future (Infinity!!!)" in a Truth Social post, despite Tehran's categorical denials.
Iranian Foreign Ministry spokesperson Esmail Baghaei said officials did not meet with International Atomic Energy Agency chief Rafael Grossi in Switzerland and had no plans for U.N. nuclear inspectors to examine Iran's damaged facilities.
The conflicting statements underscore the fragility of the ceasefire. Vice President JD Vance said talks in the Swiss mountain resort of Buergenstock laid a "good foundation" for a final accord, with Iran agreeing to allow inspectors back. Iran's U.N. ambassador in Geneva, Ali Bahreini, rejected any claims that other countries could influence decisions over Iran's assets or nuclear program.
Economic relief tied to U.S. farm purchases
The U.S. Treasury announced a 60-day sanctions waiver until Aug. 21, allowing Iran to sell oil and receive payment. Trump insisted the unfrozen funds would be placed in escrow and used exclusively to buy food from the United States, including "Corn, Wheat and Soybeans from our great American Farmers."
"Iran has 91 million people, they can't feed them," Trump told reporters. "The money that we lift is going to go to our farmers."
Iranian central bank governor Abdolnaser Hemmati told semi-official Tasnim news agency that Tehran is under no obligation to purchase agricultural inputs from the United States under the memorandum of understanding, and remaining funds could be sent for other non-sanctioned goods.
Roadmap for broader negotiations
The interim deal establishes a mechanism to end fighting between Israel and Iran-backed Hezbollah in Lebanon, where a ceasefire has largely held since Sunday despite Israeli gunfire killing two people Tuesday. Lebanon's presidency said Vance and Secretary of State Marco Rubio told Lebanese President Joseph Aoun that Washington would help establish a joint cell comprising the United States, Lebanon and Iran to consolidate the ceasefire.
A communications line will open to ensure safe passage for commercial ships through the Strait of Hormuz, though Iran and Oman suggested there may be costs involved for using the waterway. Tanker traffic began picking up Monday, with oil prices falling further Tuesday after settling 3% lower Monday.
Political peril ahead of midterms
The war has become a political liability for Trump and Republican congressional candidates as November midterm elections approach. Opinion polls show public frustration over rising gas prices since hostilities began. Trump faces pressure from Republicans demanding Iran's nuclear program be fully dismantled.
Iran has limited IAEA inspections since the first U.S.-Israeli airstrikes and suspended them entirely when war broke out. Tehran insists its nuclear program is peaceful.
The 60-day waiver period will test whether both sides can move from military confrontation to diplomatic resolution. Trump's warning that he "will do what I have to do" leaves little doubt about the consequences if Iran is perceived to violate terms — but Iran's refusal to acknowledge key deal points suggests the path to lasting peace remains uncertain.
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