An agreement has been reached between Iran and six world powers to curb Tehran's nuclear programme in exchange for limited sanctions relief.
The deal, announced by European Union policy chief Catherine Ashton, is a first step towards resolving a decade-old stand-off between Tehran and the West.
The agreement between the Islamic state and the US, Britain, France, Germany, China and Russia was nailed down after more than four days of negotiations in Geneva.
US President Barack Obama said it was an important first step towards a comprehensive solution to Iran's nuclear programme.
William Hague hailed the agreement as 'very important and encouraging'He said Iran could not use its next-generation centrifuges under the deal and the limitations under the agreement "cut off Iran's most likely paths to a bomb".
He added that if Iran did not meet its commitments during a six-month period, the US would turn off sanctions relief and "ratchet up the pressure".
Israel's Prime Minister Benjamin Netanyahu criticised the nuclear deal as a "historic mistake" and reserved his country's right to defend itself.
"Today the world became a much more dangerous place because the most dangerous regime in the world made a significant step in obtaining the most dangerous weapons in the world," he said.
US Secretary of State John Kerry and Iran's Mohammed Javad ZarifIranian President Hassan Rouhani said the agreement recognises Tehran's "rights" to maintain a nuclear programme, and it would "never" seek atomic weapons.
The country's Supreme Leader Ayatollah Ali Khamenei said: "This can be the basis for further intelligent actions. Without a doubt the grace of God and the prayers of the Iranian nation were a factor in this success."
Britain's Prime Minister David Cameron said the deal leaves Tehran further from getting a nuclear weapon and "demonstrates how persistent diplomacy and tough sanctions can together help us to advance our national interest".
Foreign Secretary William Hague said the agreement was "very important and encouraging", adding that it meant "the nuclear programme won't move forward for six months".
However, he acknowledged that "legitimate concerns" remained.
The Iranian foreign minister got a hero's welcome back in TehranHe and US Secretary of State John Kerry discussed the deal, as well as the latest developments in Syria, during talks in London on Sunday.
Speaking in London, Mr Kerry said: "This could not have happened if our friends had not come together to create sanctions and force sanctions and to press this agreement.
"Now the really hard part begins; the effort to get the comprehensive agreement in terms of verification, transparency and accountability.
"We are determined to work together. We will start today to continue the efforts out of Geneva. President Obama could not be more grateful for David Cameron's support."
High purity uranium stockpiles will be destroyed or dilutedMr Kerry offered assurances to Israel over the nuclear agreement, saying it would make the Jewish state safer over the next six months because the world would have "insights" into Iran's nuclear programme.
President Obama also telephoned Israeli Prime Minister Benjamin Netanyahu to discuss the deal, said White House spokesman Josh Earnest.
He said the US was looking forward to consulting with Israel over ongoing negotiations with Iran.
Speaking on Iran's Press TV, Iranian foreign minister Mohammad Javad Zarif said the deal was an opportunity for the West to restore trust with the Iranian nation.
He said Tehran would expand co-operation with the International Atomic Energy Agency, the UN nuclear watchdog.
European Union policy chief Baroness Catherine Ashton and Javad ZarifThe easing of sanctions could boost Iran's economy by up to $7bn (£4.3bn).
In return, it has committed to stop uranium enrichment above a purity of 5% - enough for medical use and nuclear power, Iran's stated goal, but not enough for a weapon.
Any uranium it has above 20%, which is close to the level needed for weapons, will be destroyed or diluted.
Equipment capable of enriching weapons-grade uranium will also be switched off and the deal calls for intrusive UN nuclear inspections.
The agreement has sparked fears in Israel, said Sky's Middle East Correspondent Sam Kiley.
"Israel's economy minister Naftali Bennett has said this deal could result in the use of suitcase nuclear devices five years down the line. It could be traced to this historic moment," he said.
"What they're really saying is that the international community, the world's diplomats, have been suckered by Iran in the same way that the international community was successfully suckered, let's face it, by the North Koreans who agreed to a similar deal to downscale their nuclear programme, and after a few months went by actually demonstrated that they had developed a nuclear weapon in secret.
"That is precisely what worries the Israelis."
Diplomacy was stepped up after the landslide election of Hassan Rouhani, a relative moderate, as Iranian president in June, replacing nationalist Mahmoud Ahmadinejad.
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