World powers have reached a deal with Iran on limiting Iranian nuclear activity in return for the lifting of international economic sanctions.
US President Barack Obama said that with the deal,"every pathway to a nuclear weapon is cut off" for Iran.
His Iranian counterpart, Hassan Rouhani, said it opened a"new chapter" in Iran's relations with the world.
Negotiations between Iran and six world powers - the US, UK, France, China, Russia and Germany - began in 2006.
The so-called P5+1 want Iran to scale back its sensitive nuclear activities to ensure that it cannot build a nuclear weapon.
Iran, which wants crippling international sanctions lifted, has always insisted that its nuclear work is peaceful.
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In a televised address, Mr Obama said the deal would make the world"safer and more secure", and provided for a rigorous verification regime."This deal is not built on trust - it is built on verification," he said.
Immediately afterwards, Mr Rouhani gave his own televised address, in which he said the prayers of Iranians had"come true".
He said the deal would lead to the removal of all sanctions, adding:"The sanctions regime was never successful, but at the same time it had affected people's lives.''
After 12 years, world powers had finally"recognised the nuclear activities of Iran", he said.
Analysis: Kevin Connolly, BBC Middle East correspondent
Iran's enemies remain of the view that the Iranians are hell-bent on acquiring nuclear weapons at some point and have merely agreed to a delay in return for a variety of short-term concessions.
There is a danger now that Saudi Arabia will feel that a nuclear-capable Shia state must be matched by a nuclear capability in the hands of the Sunni states too.
That brings the nightmare of a nuclear arms race in the Middle East a step closer.
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