WASHINGTON (Reuters) - German Chancellor Angela Merkel said on Friday negotiations with Iran over its nuclear program have to be given a chance, but sanctions could still be reinstated if needed.

Merkel said Iran had to comply with an agreement under which Tehran agreed to limit parts of its nuclear work in return for the easing of some sanctions.

"If Iran does not meet its obligations, or does not meet them adequately, we remain ready to take back the current limited suspension of sanctions," she said at a U.S. Chamber of Commerce event.

"But first of all, we have to give the negotiations a chance.

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