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Israeli Prime Minister Benjamin Netanyahu's government denounced a nuclear agreement between Iran and six other nations on Sunday as a "bad deal" to which Israel would not be bound.

Yet Israeli officials stopped short of explicitly threatening military action that could further isolate the Jewish state and imperil its alliance with Washington, saying more time was needed to assess the accord.

"This is a bad deal. It grants Iran exactly what it wanted - both a significant easing in sanctions and preservation of the most significant parts of its nuclear program," an official in Netanyahu's office said.

"The economic pressure on Iran could have brought about a much better deal, which would have dismantled Iran's nuclear capabilities."

Aimed at ending a dangerous standoff, the agreement between Iran and the United States, France, Germany, Britain, China and Russia was nailed down after more than four days of negotiations in Geneva.

The West fear that Iran has been seeking to develop nuclear weapons capability. Tehran denies this, saying its nuclear program is a peaceful energy project.

The United States said the agreement has halted progress on Iran's nuclear program, including construction of the Arak research reactor, which is of special concern for the West as it can yield potential bomb material.

Washington has conducted direct talks with Teheran in recent months in the drive to reach a nuclear deal, a senior US official said, adding that the previously undisclosed talks were in addition to the negotiations between officials of the six major powers and Iran.

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