The UN's atomic watchdog said Iran has fulfilled its side of a nuclear deal, paving the way for sanctions to be lifted, Sky News reported Saturday.

The International Atomic Energy Agency (IAEA) has confirmed that Tehran has adhered to all the terms of last year's landmark deal with six world powers.

"Iran has carried out all measures required under the July deal to enable Implementation Day to occur," the Vienna-based agency said in a statement.

The European Union has responded by lifting its crippling sanctions on Iran.

The United States will also proceed with lifting its sanctions.

Iran's foreign minister Javad Zarif said in Vienna, "I believe it is not just an important day for economic activity in Iran.

"It is going to open the possibilities, vast possibilities in Iran for economic engagement and we have all seen that the international business community is very much interested in getting engaged in Iran to take advantage of it.

"Today is the day when we prove to the world that threats, sanctions, intimidation, pressure don't work."

Source: MENA