The United States, Iran and five other world powers say they have reached an understanding that will direct them towards achieving a comprehensive nuclear agreement within three months.
Reading out a joint statement, EU foreign policy chief Federica Mogherini said a "decisive step" has been achieved.
The agreement, announced in the Swiss city of Lausanne on Thursday, will curb Iran's nuclear capacities and ease sanctions imposed on the country.
Foreign Minister Javad Zarif welcomed the agreement as he read out the same statement in the news conference. He described the deal as a "win-win" agreement.
The deal with limit Iran's nuclear activity to the Natanz plant.
Mogherini said the seven nations would now start writing the text of a final accord.
She cited several agreed-upon restrictions on Iran's enrichment of material that can be used either for energy production or in nuclear warheads. She said Iran will not produce weapons-grade plutonium.
The US, Britain, France, Germany, Russia and China have negotiated with Tehran for years to prevent it from acquiring the means to develop a nuclear bomb.
Tehran had insisted on international sanctions that have crippled its economy to be lifted, while preserving what it views as its right to nuclear technology for peaceful purposes
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