An agreement has been reached between Iran and six world powers to curb Tehran's nuclear programme in exchange for limited sanctions relief.
The agreement, announced by European Union policy chief Catherine Ashton after days of talks in Geneva, is a first step towards resolving a decade-old stand-off between Tehran and the West.
The deal between the Islamic state and the US, Britain, France, Germany, China and Russia was nailed down after more than four days of negotiations.
US President Barack Obama has hailed the deal as an important first step towards a comprehensive solution to Iran's nuclear programme.
William Hague hailed the agreement as 'very important and encouraging' Speaking from the White House, Obama said Iran could not use its next-generation centrifuges under the deal and that the substantial 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".
"While today's announcement is just a first step, it achieves a great deal," Mr Obama said.
"For the first time in nearly a decade, we have halted the progress of the Iranian nuclear programme, and key parts of the programme will be rolled back."
US Secretary of State John Kerry and Iran's Mohammed Javad Zarif Britain's 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".
Iran will get access to $4.2bn (£2.6bn) in foreign exchange as part of the accord, a Western diplomat said.
A senior US official added that the agreement halted progress on Iran's nuclear programme, including construction of the Arak research reactor.
It would neutralise Iran's stockpile of uranium refined to a fissile concentration of 20%, which is a close step away from the level needed for weapons, and calls for intrusive UN nuclear inspections, the official said.
Iran has also committed to stop uranium enrichment above a fissile purity of 5%, a US fact sheet said.
The deal has no recognition of an Iranian right to enrich uranium and sanctions would still be enforced, the US official added.
US Secretary of State John Kerry and foreign ministers of the five other world powers joined the negotiations with Iran early on Saturday as the two sides appeared to be edging closer to a long-sought preliminary agreement.
European Union policy chief Baroness Catherine Ashton and Mr Javad Zarif The talks were aimed at finding a package of confidence-building steps to ease decades of tensions and banish the spectre of a Middle East war over Tehran's nuclear aspirations.
The Western powers' goal had been to cap Iran's nuclear energy programme, which has a history of evading UN inspections and investigations, to remove any risk of Tehran covertly refining uranium to a level suitable for bombs.
Tehran denies it would ever "weaponise" enrichment.
Refined uranium can be used to fuel nuclear power plants - Iran's stated goal - but also provide the fissile core of an atomic bomb if refined much further.
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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