'Framework' nuclear deal agreed with Iran

Marathon negotiations between world powers and Iran over its nuclear ambitions have produced a far-reaching agreement on "key parameters" that will substantially restrict Tehran's atomic programme in return for the lifting of economic sanctions.

After eight days of talks in Switzerland and a final negotiating session that lasted until dawn on Thursday morning, the surprisingly detailed agreement marks a historic breakthrough in long-running efforts to ensure that Iran's nuclear programme remains peaceful.

Although some important technical details have yet to be worked out, the announcement on Thursday will provide significant momentum to negotiators as they try to meet a June 30 deadline for a final agreement.

However, both the American and Iranian delegations will still face a tough task as they try to sell the framework agreement to sceptical constituencies in their home capitals.

The price of internationally traded Brent crude dropped $2.92 a barrel to $54.24 on Thursday evening as news of the dramatic progress emerged. The removal of sanctions that have crippled the Iranian economy and starved its oil and gas industry of investment and technology, should see a longer-term increase in exports of oil.

Describing the agreement as an "historic understanding", President Barack Obama said it was "a good deal, a deal that meets our core objectives" in a White House address that was aired on Iranian television.

"If Iran cheats, the world will know it. If we see something suspicious, we will inspect it," he said. Mr Obama also urged Congress not to block the deal, warning that "the United States will be blamed for the failure of diplomacy" and that "the path to conflict will widen".

However, Republican leaders in the Senate said they would push ahead this month with legislation that allows Congress to approve or reject any final deal - a bill that Mr Obama has threatened to veto because the White House fears it could undermine the negotiations. The agreement was immediately criticised by Israeli officials and is also unlikely to reassure many of the US allies in the Gulf who fear that a nuclear agreement will embolden Iran to flex its muscles in the region.

Mohammad Javad Zarif, the Iranian foreign minister, celebrated the agreement, saying at a press conference that "we have stopped a cycle that is not in the interest of anybody". The announcement prompted celebrations on the streets of some parts of Tehran, where Hassan Rouhani, Iran's centrist president, has promised an end to the punishing economic pressure imposed by sanctions.

In anticipation of some of the criticism he might receive from hardliners at home, Mr Zarif stressed that Iran was not closing any of its nuclear facilities and that all the nuclear sanctions on Iran would be lifted as part of the deal. After the US issued a detailed statement about the nature of the agreement that partly contradicted those assurances, Mr Zarif took to Twitter to complain that "there is no need to spin using 'fact sheets' so early on".

Even though a final deal has yet to be reached, the agreement reflects a striking shift in relations between the US and Iran, who were barely on speaking terms two years ago. At various points over the last week, it seemed the chance for an outline agreement might slip out of reach.

"They've been difficult, at times, extremely intense, at times, emotional, always challenging. And not all of our meetings were easy," said US secretary of state John Kerry. "In fact, many were quite difficult, because the passions are there for everybody."

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Under the framework agreement that is to be finalised by June, Iran agreed to restrict its programme by limiting its uranium enrichment capacity level and stockpile for a specified duration.

For a period of 10 years, Iran will reduce the number of working centrifuges from 19,000 to 5,060 and cut its stockpile of enriched uranium from 10 tonnes to 300 kilos by exporting its stocks or diluting them, according to the detailed fact sheet released by the US.

Another important aspect of the compromise is that no enrichment will take place at the underground Fordow facility, while the core of the reactor at the Arak heavy water facility will be destroyed or taken out of the country. Iran has also agreed to an inspection regime that Mr Obama described as the most intrusive in the world.

In exchange, world powers will provide significant economic and financial sanctions relief, first with the removal of EU sanctions while US sanctions will be lifted simultaneously with verification of Iran's compliance. UN sanctions, which were the subject of intense haggling in the past few days, will also be removed but with some restrictive measures remaining, particularly over access to dual-use technologies. The US and EU sanctions can also be swiftly restored if Iran does not comply with the deal, a condition that some hardliners in Tehran might find difficult to digest.

Moreover, several important gaps remain in the talks that could complicate reaching a final agreement. The pace and process for unwinding many of the nuclear sanctions that Iran faces remains unclear in the event of a final deal, while there are also questions about how quickly restrictions on Iranian enrichment of uranium will be relaxed after the first ten years of a deal. The agreement also did not resolve issues surrounding Iran's past research into military dimensions of their nuclear programme.

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