Iran and six major world powers have finally ironed out a landmark nuclear accord that could likely transform the Middle East following more than 10 years of on-off dialogue.
However, the deal was immediately denounced by US ally Israel, which called it a "historic surrender by the West," according to reports.
The deal would allow economic sanctions imposed by the US, EU and the UN on Iran to be lifted in exchange for Tehran's long-term limitations on its nuclear program, which key Western countries have suspected to be a cover-up for Iran's development of nuclear weapons, Reuters wrote.
"All the hard work has paid off and we sealed a deal. God bless our people," an Iranian diplomat said on conditions of anonymity ahead of the official announcement.
The milestone deal clinched by the involved parties is considered a major policy victory for both US President Barack Obama and Iranian President Hassan Rouhani, who won the polls two years ago on promises that he would lessen Iran's isolation in the international community.
However, the two leaders both face criticism from hard-liners in their respective countries as the two countries previously called each other "the Great Satan" and a member of the "axis of evil."
Israeli Prime Minister Benjamin Netanyahu described the agreement as "a bad mistake of historic proportions."
"Iran will get a jackpot, a cash bonanza of hundreds of billions of dollars, which will enable it to continue to pursue its aggression and terror in the region and in the world," he said. "Iran is going to receive a sure path to nuclear weapons."
Israeli Deputy Foreign Minister Tzipi Hotovely aired a similar sentiment, saying on Twitter: "This deal is a historic surrender by the West to the axis of evil headed by Iran."
One Israeli cabinet member, Miri Regev, said the Islamic republic has just been given a "licence to kill."
Israel, which has been repeatedly threatened by Iranian officials and was the subject of attacks by Tehran-backed militant groups, said the government will do everything to stop the deal from being ratified by Republican-led US Congress, Daily Mail wrote.
"Israel will act with all means to try and stop the agreement being ratified," she said. "Israel has been at the forefront of efforts to block an accord that would lift sanctions on Iran."
Iranian officials over the years have repeatedly threatened to destroy Israel, with Tehran reportedly backing militant groups that have attacked Israel.
The US Congress has two months to review the historic bargain, and if it moves to disallow it, Obama can veto the legislative branch's rejection. Two-thirds of lawmakers would be needed to override the presidential veto, meaning some of Obama's fellow Democrats would have to dissent against one of their president's signature achievements to shoot down the accord.
One safety measure included in the final agreement is a "snapback" mechanism, which would reinstate some sanctions in 65 days if Iran violates the deal.
A UN weapons embargo and a ban on purchase of missile technology would remain in effect for five years and eight years, respectively.
