US

IMF says Iran rebounds after nuclear deal, but danger looms

  • --FILE-- In this Tuesday, July 19, 2016, file photo, Iranians walk through Tajrish bazaar in northern Tehran, Iran. Iran's economy rebounded out of a recession after the nuclear deal with world powers, the International Monetary Fund said on Tuesday, though uncertainty over future sanctions and problems plaguing the country's domestic banks could cause fiscal trouble ahead. (AP Photo/Vahid Salemi, file)

    --FILE-- In this Tuesday, July 19, 2016, file photo, Iranians walk through Tajrish bazaar in northern Tehran, Iran. Iran's economy rebounded out of a recession after the nuclear deal with world powers, the International Monetary Fund said on Tuesday, though uncertainty over future sanctions and problems plaguing the country's domestic banks could cause fiscal trouble ahead. (AP Photo/Vahid Salemi, file)  (The Associated Press)

  • --FILE-- In this Tuesday, July 19, 2016, file photo, Iranians walk through Tajrish bazaar in northern Tehran, Iran. Iran's economy rebounded out of a recession after the nuclear deal with world powers, the International Monetary Fund said on Tuesday, though uncertainty over future sanctions and problems plaguing the country's domestic banks could cause fiscal trouble ahead. (AP Photo/Vahid Salemi, file)

    --FILE-- In this Tuesday, July 19, 2016, file photo, Iranians walk through Tajrish bazaar in northern Tehran, Iran. Iran's economy rebounded out of a recession after the nuclear deal with world powers, the International Monetary Fund said on Tuesday, though uncertainty over future sanctions and problems plaguing the country's domestic banks could cause fiscal trouble ahead. (AP Photo/Vahid Salemi, file)  (The Associated Press)

The International Monetary Fund says Iran's economy has rebounded after the nuclear deal with world powers, but warns that uncertainty over future sanctions and problems with the country's domestic banks could cause trouble ahead.

The IMF released a report early on Tuesday that said Iran's real gross domestic product grew by 7.4 percent, recovering from a recession.

It attributed that growth largely toward oil production recovering after the atomic accord, which saw economic sanctions against Iran lifted in exchange for it limiting its enrichment of uranium.

However, the IMF warned that Iran's domestic banking sector, with many lenders beset by bad loans, needed reformed.

It also warned renewed tensions with the U.S. "could deter investment and trade with Iran and short-circuit the anticipated recovery."