But, while the waiver on the nuclear-related sanctions was renewed, the US Treasury imposed new measures to punish Iranian defense officials and a Chinese business tied to Tehran's missile program.
The decision not to renew sanctions came just two days before Iran is due to go to the polls and may prove a boost for President Hassan Rouhani, who signed the deal and is seeking re-election.
Under the terms of the 2015 deal, the previous US administration of president Barack Obama agreed to waive sanctions on Iran's nuclear program in return for strict controls to prevent its developing a bomb.
But Washington's top diplomat for the Middle East, Stuart Jones, said in a statement that the department had told Congress that "the United States continues to waive sanctions" that were lifted under the Iran deal.
Nevertheless, he added, the Treasury will apply new targeted sanctions on individuals and firms helping Iran's missile banned ballistic program and to hold Tehran to account for rights abuses.
"Iran continues to pursue missile-related technologies capable of delivering a nuclear weapon," he said, noting that the missile program is in breach of internationally-backed UN Security Council resolutions.
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