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World March 24, 2026

U.S. Pushes for Iran Deal as Israeli Officials Doubt Success

Senior Israeli sources say Tehran is unlikely to accept U.S. conditions after breakdown of talks linked to February hostilities

By Hana Yamamoto
U.S. Pushes for Iran Deal as Israeli Officials Doubt Success

Three senior Israeli officials told Reuters that U.S. President Donald Trump appears intent on negotiating a settlement with Iran to end Middle East hostilities, but those officials said they consider it unlikely that Iran will accept U.S. demands. Negotiations collapsed on February 28 following the launch of the U.S.-Israeli war on Iran. The U.S. is understood to be seeking limits on Iran's nuclear and ballistic missile programmes. Trump said on social media that talks had been "very good and productive", while Iran denied any negotiations had taken place. Israeli Prime Minister Benjamin Netanyahu said Trump saw a chance to convert military gains into a deal that would protect vital Israeli interests.

Key Points

  • U.S. President Donald Trump appears intent on negotiating a settlement with Iran to end hostilities in the Middle East.
  • Three senior Israeli officials said they believe Iran is unlikely to accept expected U.S. demands, which are likely to target limits on Iran's nuclear and ballistic missile programmes; sectors potentially impacted include defence, geopolitically sensitive markets, and risk-sensitive financial assets.
  • Negotiations previously collapsed on February 28 following the launch of the U.S.-Israeli war on Iran; public statements from Trump and Iran directly contradict one another about whether talks occurred.

JERUSALEM, March 24 - U.S. President Donald Trump appears determined to secure an agreement with Iran aimed at ending hostilities in the Middle East, three senior Israeli officials said on Tuesday. The officials, who spoke on condition of anonymity, expressed scepticism that Iran would accept U.S. terms in any renewed round of talks.

Those officials said it was unlikely Tehran would agree to the demands the United States is expected to press in new negotiations. They said the most probable U.S. conditions would include restrictions on Iran's nuclear and ballistic missile programmes. The officials noted that previous negotiations had broken down on February 28 with the launch of the U.S.-Israeli war on Iran.

President Trump wrote on social media on Monday that the United States and Iran had engaged in "very good and productive" conversations about a "complete and total resolution of hostilities in the Middle East". Within hours of the post, Iran responded by saying no negotiations had taken place.

Also on Monday, Israeli Prime Minister Benjamin Netanyahu commented on the situation, saying that Trump believed there was a possibility of "leveraging the mighty achievements obtained by the IDF (Israel Defence Forces) and the U.S. military, in order to realize the goals of the war in a deal - a deal that will preserve our vital interests."

The accounts from the Israeli officials underline a gap between U.S. diplomatic initiative as characterised by Mr. Trump and the sceptical assessment of those close to Israel's security establishment about Tehran's willingness to comply with likely U.S. demands. The officials' comments reflect their view that, despite apparent U.S. engagement, practical agreement on curbs to Iran's nuclear and ballistic missile capabilities remains improbable.

Contextual note: The officials spoke anonymously. Iran's response to Mr. Trump's social media statement explicitly denied that any negotiations had occurred.

Summary of key quotes

  • President Trump: the U.S. and Iran had "very good and productive" conversations about a "complete and total resolution of hostilities in the Middle East".
  • Israeli officials: they view it as unlikely that Iran would agree to U.S. demands in renewed talks.
  • Prime Minister Netanyahu: Trump saw a chance to "leverage" military achievements to reach a deal "that will preserve our vital interests."

Risks

  • Low probability, according to the Israeli officials, that Iran will agree to the likely U.S. demands - a diplomatic risk that could sustain military and political tensions and affect defence and market stability.
  • Conflicting public accounts from the United States and Iran about whether conversations took place introduce uncertainty around the negotiating process and its timeline, creating short-term informational risk for markets and policymakers.
  • The breakdown of talks on February 28 tied to the launch of the U.S.-Israeli war on Iran suggests ongoing volatility and the potential for renewed escalation, posing risk to sectors sensitive to geopolitical disruption such as defence contractors and risk-sensitive capital markets.

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