The 20-year-old, who also holds the 50m world record and won European and Commonwealth titles last year, finished in 57.92 seconds, beating the 58.46 mark set by South Africa's Cameron van der Burgh on his way to Olympic gold at London 2012.
"I kind of surprised myself," Peaty told the BBC after becoming the first man to break the 58 seconds barrier.
"I was going to wait until Kazan (world championships) to produce that time and I can't really believe it.
“The crowd really carried me home on the last 50 because it’s a hell of a pain train. It’s kind of surreal, there must be something in that lane four that really matters.
“I knew I could get 58 mid and I knew that if the heavens were on my side I could get a 58 low but to be the first person under 58 -- I have got no words.”
(Writing by Ken Ferris,; Editing by Ed Osmond)
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