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 Reaching the agreement did not bury the controversy of one of the
most bitterly contested diplomatic issues of the day: the European
Union called it a "sign of hope for the entire world", while Israel
called it an "historic surrender".
Under the deal, sanctions imposed by the United States, European
Union and United Nations will be lifted in return for Iran agreeing
long-term curbs on a nuclear program that the West has suspected was
aimed at creating a nuclear bomb.
The agreement is a major political victory for both U.S. President
Barack Obama and Iran's President Hassan Rouhani, a pragmatist
elected two years ago on a vow to reduce the diplomatic isolation of
a country of 77 million people.
But both leaders face scepticism from powerful hardliners at home
after decades of enmity between nations that referred to each other
as "the Great Satan" and a member of the "Axis of Evil".
Rouhani was quick to present the deal as a step on the road towards
a wider goal of international cooperation. The deal "shows
constructive engagement works", he tweeted. "With this unnecessary
crisis resolved, new horizons emerge with a focus on shared
challenges."
 For Obama, the diplomacy with Iran, begun in secret more than two
years ago, ranks alongside his normalization of ties with Cuba as
landmarks in a legacy of reaching out to enemies that tormented his
predecessors for decades.
While the main negotiations were between the United States and Iran,
the four other U.N. Security Council permanent members, Britain,
China, France and Russia, are also parties to the deal, as is
Germany.
"HISTORIC MISTAKE"
Israeli Prime Minister Benjamin Netanyahu called the deal "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 called the deal an
"historic surrender". She said on Twitter that Israel would "act
with all means to try and stop the agreement being ratified", a
clear threat to try to use its influence to block it in the
Republican-controlled U.S. Congress.
Congress has 60 days for a review, though if it rejects the deal,
Obama can use his veto. It would require two- thirds of lawmakers to
override such a veto, which means some of Obama's fellow Democrats
would have to rebel against one of their president's signature
achievements in order to kill the deal.
Iran is not likely to receive many of the benefits from the lifting
of sanctions until next year because of the need to ratify the deal
and verify its implementation.
“Celebrating too early can send a bad signal to the enemy,” Iranian
conservative lawmaker Alireza Zakani was quoted as saying in
parliament by Fars News agency.
He noted that Iran's National Security Council would also review the
deal, "and if they think it is against our national interests, we
will not have a deal", he said. "The Islamic Republic will not sign
a bad deal.”
The final round of talks in Vienna involved nearly three weeks of
intense negotiation between U.S. Secretary of State John Kerry and
Iranian Foreign Minister Mohammad Javad Zarif.
It was something that would until recently have been unthinkable for
two countries that have been bitter enemies since 1979, when Iranian
revolutionaries stormed the U.S. embassy in Tehran and held 52
Americans hostage for 444 days.
"NEW CHAPTER OF HOPE"
"I believe this is an historic moment," Zarif, who was educated in
the United States and developed a warm rapport with Kerry, told a
news conference. "Today could have been the end of hope on this
issue, but now we are starting a new chapter of hope. Let's build on
that."
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European Union foreign policy chief Federica Mogherini, who acted as
coordinator for the powers, said: "It is a decision that can open
the way to a new chapter in international relations and show that
diplomacy, coordination, cooperation can overcome decades of
tensions and confrontations.
"I think this is a sign of hope for the entire world."
Hatred of the United States has been a defining trait of Iran's
ruling system, on display last week when it marked the last Friday
of the Ramadan fasting month with an annual day of protests, crowds
chanting "Death to Israel!" and "Death to America!".
Obama first reached out to Iranians with an address in 2008, only
weeks into his presidency, offering a "new beginning".
Iran has long denied it is seeking a nuclear weapon and has insisted
on the right to nuclear technology for peaceful means, although
Western powers feared the enriched uranium that it was stockpiling
could be used to make a bomb. Obama never ruled out using military
force if negotiations failed.
Iran's IRNA news agency said billions of dollars in frozen funds
would be released under the deal, and sanctions on its central bank,
national oil company, shipping and airlines would now be lifted.
According to a text of the agreement published by the Russian
Foreign Ministry (
http://www.mid.ru/foreign_policy/news/-/asset_publisher/cKNonkJE02Bw/content/id/1571042
), Iran will retain the right to conduct research into enriching
uranium for 10 years, without stockpiling it.
"SNAPBACK MECHANISM" FOR SANCTIONS
Western diplomats said Iran had accepted a "snapback" mechanism,
under which some sanctions could be reinstated in 65 days if it
violated the deal. A U.N. weapons embargo is to remain in place for
five years and a ban on buying missile technology will remain for
eight years.
Alongside the deal, the United Nations nuclear watchdog, the
International Atomic Energy Agency, announced an agreement with Iran
on a road map to resolve its own outstanding issues with Tehran by
the end of this year.
The main deal with the world powers depends on the IAEA being able
to inspect Iranian nuclear sites and on Iran answering the
watchdog's questions about the possible military aims of previous
research.
The prospect of an agreement benefiting Iran is anathema to U.S.
allies in the Middle East. Tehran does not recognize Israel and
supports its enemies. And Arab states ruled by Sunni Muslims,
particularly Saudi Arabia, believe that Shi'ite Muslim Iran supports
their foes in wars in Syria, Yemen and elsewhere.
But there is also a strong reason for the United States to improve
its relations with Iran, as the two countries face a common foe in
Islamic State, the Sunni Muslim militant group that has seized
swathes of Syria and Iraq.
For Iran, the end of sanctions could bring a rapid economic boom by
lifting restrictions that have drastically cut its oil exports, and
have shrunk its economy by about 20 percent, according to U.S.
estimates. The prospect of a deal has already helped push down
global oil prices because of the possibility that Iranian supply
could return to the market.
Oil prices tumbled more than a dollar on Tuesday after the deal was
reached. [O/R]
"Even with an historic deal, oil from Iran will take time to return,
and will not be before next year, most likely the second half of
2016," Amrita Sen, chief oil analyst at London-based consultancy
Energy Aspects, told Reuters. "But given how oversupplied the market
is with Saudi output at record highs, the mere prospect of new oil
will be bearish for sentiment."
(Additional reporting by Shadia Nasralla and Bozorgmehr Sharafedin
Nouri; Writing by Peter Graff; Editing by Kevin Liffey)
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