Obama: 'If Iran cheats, the world will know it.'

Following eight days of talks in the Swiss city of Lausanne, six world powers including the US and Germany, reached a form of agreement with Iran on its nuclear program.

The potentially historic deal would see Iran reduce its nuclear ambitions in return for relaxed sanctions imposed by the West over fears Tehran was developing atomic weapons.

The deadline was extended past midnight on March 31st as the group was still no closer to a draft agreement.

Celebrations in Tehran carried on into the early hours of Friday, but at least one of its Middle East neighbors was dissatisfied with the outcome.

In response to the breakthrough, Israel said the prospect of a future binding pact "would threaten its survival."

Deal divides Middle East

US President Barack Obama praised the "historic understanding" with the Islamic Republic following decades of hostility, however, he said that more work needed to be done.

"If Iran cheats, the world will know it," he said in a televised address from the White House.

But Iran's opponent Israel, also widely believed to have nuclear weapons of its own, said the deal would increase the risk of nuclear proliferation and "a horrific war".

Making reference to Obama's televised address following the outcome of the Lausanne negotiations, Israeli Prime Minister Benjamin Netanyahu said the deal "would not block Iran's path to the bomb. It would pave it."

"A deal based on this framework would threaten the survival of Israel," spokesman Mark Regev added in a series of tweets, citing Netanyahu:

The main outline agreed in Switzerland is to be finalized by all parties involved in the talks by June 30.

lw/sms (AP, AFP)