US-Iran War Highlights: Trump warns Iran — ‘I will do what I have to do if Tehran violates agreement’

This live blog is closing. Thanks for following Live Mint.

US President Donald Trump warned Iran that Washington will respond if Tehran fails to honor its agreement with the United States.

"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.

"We spent all of this money. And then when we want to maybe have help on small stuff... They say no we would rather not help," US President Donald Trump said during a press conference in the Oval Office.

"Stupid thing to say, because we can say that to them if we want, and we might," he added.

Oil prices fell more than 3% on Monday as concerns over supply disruptions eased amid signs of progress in US-Iran negotiations.

US Vice President JD Vance said talks with Iran had made progress and confirmed that the Strait of Hormuz remained open.

Brent crude settled down $2.67, or 3.31%, at $77.90 per barrel.

US West Texas Intermediate (WTI) July futures settled down $1.78, or 2.32%, at $74.82 per barrel.

The more-active August WTI contract fell $1.99 to $73.86 per barrel.

Earlier in the session, Brent had climbed as high as $82.30 per barrel after threats from Donald Trump to restart the Iran war and Tehran's claim that it had again closed the Strait of Hormuz.

Turkish President Recep Tayyip Erdogan welcomed the agreement reached between the United States and Iran during a phone call with Iranian President Masoud Pezeshkian.

Erdogan pledged Turkey's continued support for efforts aimed at ensuring the agreement concludes peacefully.

According to the Turkish presidency, Erdogan urged vigilance against "those who want to sabotage the negotiations."

The remark was widely interpreted as an apparent reference to Israel, which has been critical of diplomatic engagement with Iran.

JD Vance leaves Switzerland, said both the US and Iran have left substantial negotiating teams in Switzerland to continue working on details of the interim agreement.

While senior-level meetings concluded, negotiators from both sides remain engaged in technical discussions aimed at advancing a final deal.

Vance did not specify which American officials or negotiators would stay behind to continue the talks.

According to Vance, Iran has likewise kept a large team in Switzerland to continue negotiations.

The remaining teams are expected to work through complex details of the US-Iran understanding reached during the latest round of talks.

"My directive, and that of the minister of defence, to the IDF is clear and has not changed: Our fighters in southern Lebanon have full freedom of action to thwart any direct or developing threat to them or to the residents of the North," Netanyahu said in a statement.

"The IDF has no restrictions on this matter."

Lebanese President Joseph Aoun and US Vice President JD Vance discussed the creation of a “de-confliction mechanism” for Lebanon aimed at preventing renewed escalation between Israel and Hezbollah, according to statements from Beirut and Washington.

“The de-confliction mechanism is being set up to ensure that when things happen, they don’t spiral into a broader escalation,” Vance said.

“We do believe… that we can get to a place where Lebanon’s territorial integrity and sovereignty is protected, Israel’s security is protected,” Vance said.

He also stressed that stabilising Lebanon would require pressure on armed groups: “It’s going to require the Iranians to rein in Hezbollah.”

Direct damage to buildings in southern Lebanon from the latest Israel-Hezbollah war is estimated at $1.38 billion, according to a joint assessment by the United Nations Development Programme and Lebanon's National Council for Scientific Research.

The assessment found that 11,095 buildings were completely destroyed during the conflict.

The destruction affected 17,891 housing units, leaving thousands of families impacted.

An additional 2,242 buildings suffered partial damage.

Another 9,311 buildings sustained minor damage.

Oil prices declined as progress in US-Iran peace talks improved expectations of increased crude supplies from the Persian Gulf.

Brent crude traded around $78 per barrel, while West Texas Intermediate (WTI) hovered near $74 per barrel.

US Secretary of State Marco Rubio will travel to the United Arab Emirates, Kuwait and Bahrain from Tuesday through Thursday as the Trump administration seeks to build support among key Gulf allies for its preliminary agreement with Iran aimed at ending months of conflict in the Middle East.

During his visit to Bahrain, Rubio is expected to meet representatives of the Gulf Cooperation Council, a regional bloc comprising Bahrain, Saudi Arabia, the United Arab Emirates, Kuwait, Qatar and Oman.

Canada's annual inflation rate rose to 3.2% in May, the highest level in 29 months, according to Statistics Canada.

The increase was driven largely by higher gasoline prices, which surged after disruptions linked to the Iran conflict and the closure of the Strait of Hormuz.

Statistics Canada said the closure of the strategic waterway put upward pressure on fuel prices, contributing significantly to overall inflation.

Treasury Secretary Scott Bessent says: "In line with the ongoing productive talks in Switzerland, Iran has committed to free and open transit in the Strait of Hormuz and to permit International Atomic Energy Agency (IAEA) inspectors into their country."

US Vice President JD Vance said talks with senior Iranian officials in Switzerland have laid a "good foundation for a successful final deal."

The negotiations are aimed at securing a permanent end to the conflict involving the United States, Israel and Iran.

Vance made the remarks after meeting with Mohammad Bagher Qalibaf.

Describing the progress, Vance said:

"The final deal is the house. We set the foundation. We haven't built the house, but we've laid a successful foundation."

The United States has temporarily lifted sanctions on Iran's oil sector until August 21, 2026.

The sanctions waiver allows Iran to produce, sell and transport crude oil and related petroleum products during the period.

The move was announced by US Treasury Secretary Scott Bessent.

Washington cited Iran's commitments in ongoing negotiations, including:

-Ensuring free and open transit through the Strait of Hormuz.

-Allowing International Atomic Energy Agency (IAEA) inspectors access to the country.

A Treasury Department license authorizes transactions previously prohibited under US sanctions.

The authorization remains in effect until 12:01 a.m. EDT on August 21, 2026.

Vance revealed that a mechanism for overseeing any released Iranian assets had been developed with the involvement of senior Trump adviser Jared Kushner and the Qatari government, which helped mediate the negotiations alongside Pakistan.

"Jared Kushner, together with the Qataris, came up with a very interesting solution," Vance said. "If there is any frozen Iranian assets that are unfrozen, then we have approval over that process; the Qataris have approval over that process."

US Vice President JD Vance defended provisions in the preliminary US-Iran peace framework that could eventually lead to the release of frozen Iranian assets, insisting that Washington and its partners would ensure the funds are not used to support terrorism.

Speaking to reporters at the Burgenstock resort in Switzerland after the first round of negotiations between Washington and Tehran concluded, Vance said safeguards would be in place to monitor how any unfrozen funds are spent.

"If we ever unfreeze Iranian assets, we can ensure that... Iranian money goes to help the people of Iran and not to fund terrorism," Vance said.

He called it "great for our people, great for the people of Iran, and fundamentally, again, will contribute to this regional security architecture that we've built and that we're going to work very hard to ensure that it endures".

Brent crude was down $1.46, or 1.8%, at $79.11 a barrel by 1127 GMT. Prices had climbed to $82.30 at the start of trading because of threats from U.S. President Donald Trump to restart the war on Iran, as well as an announcement from Tehran that it had again closed the Strait of Hormuz. (Reuters)

Tehran has agreed to invite International Atomic Energy Agency inspectors back into the country, US Vice President JD Vance said Monday, after a first round of US-Iran talks towards ending the Middle East war.

"The Iranians have agreed to invite IAEA inspectors back into their country," Vance told reporters at Switzerland's Burgenstock resort, adding that this "is a major milestone for the American people and the first step in permanently denuclearising or permanently ending a nuclear weapons programme in Iran". (AFP)

“The final deal is the house,” Vance told reporters. “We set the foundation. We haven’t built the house, but we’ve laid a successful foundation to get to a good place for the American people.”