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U.S. President Barack Obama delivers a statement on Iran at the White House in Washington. Obama signed an executive order lifting sanctions on Iran related to its nuclear program after Tehran fulfilled requirements under a nuclear agreement with world powers, the White House said. Image Credit: REUTERS

Washington:  President Barack Obama on Sunday heralded the implementation of a nuclear deal with Iran, saying world powers had cut off every path it had to a nuclear bomb and that a prisoner swap showed what was possible with diplomacy.

"This is a good day because once again we are seeing what's possible through strong American diplomacy," Obama said at the White House.

"These things are a reminder of what we can achieve when we lead with strength and with wisdom."

The president said the United States still had profound differences with Iran and would continue to enforce sanctions against its ballistic missile program.

He said he was hopeful the events signaled an opportunity for Iran to work more cooperatively with the rest of the world. The Americans unjustly detained by Iran are finally coming home, he said.

‘Smart diplomacy’

President Barack Obama also heralded the release of Americans held prisoner in Iran and the full implementation of a historic nuclear accord with the Islamic Republic, holding both up as victories for "smart" diplomacy and his pledge to deal directly with enemies of the United States.

"This is a good day," Obama said in a statement from the White House. "When Americans are freed and returned to their families, that's something we can all celebrate."

The president spoke at the close of an extraordinary weekend of diplomacy that saw the back-to-back release of the five Americans and the lifting of billions in international sanctions on Iran as part of the nuclear accord.

Yet underscoring the strain that continues to exist between the US and Iran, the Obama administration also announced new penalties Sunday on 11 individuals and entities involved in Tehran's ballistic missile program.

"We will continue to enforce these sanctions vigorously," Obama said. "We are going to remain vigilant about it."

For Obama, the diplomatic breakthroughs are a validation of his early promises to deal directly with nations such as Iran.