DUBAI, United Arab Emirates (AP) — 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."