Iran, major powers reach historic nuclear deal: Diplomat

Iran and six major powers have reached a historic nuclear deal, which will grant Tehran sanctions relief in exchange for curbs on its nuclear programme, an Iranian diplomat said on Tuesday.

The agreement would likely see some sanctions on Tehran removed in exchange for restrictions to its nuclear program.

"All the hard work has paid off and we sealed a deal. God bless our people," the diplomat told agency on condition of anonymity. Another Iranian official confirmed the agreement.

Oil prices came under pressure following the news, with Brent crude trading down 1.7 percent at USD 57.85 a barrel at 7:30 a.m. London time.

Iran and the major powers have been negotiating for more than two weeks in Vienna in an effort to strike a deal under which Tehran would curb its nuclear program in return for relief from economic sanctions that have crippled its economy.

Reaching an agreement on Iran has been a top priority for President Barack Obama's administration, but could put him on collision course in Congress and cause tensions with allies in the Middle East.

Obama has maintained that a deal would curb Iran's nuclear ambitions, but other nations in the region are concerned that a lifting of economic sanctions could see Iran bolster its conventional military capabilities.