Since coming to power in July, Iran’s new political leadership has signaled its interest in reengaging with the West — which could bring restored ties and sanctions relief for the isolated country.

For Iran, engagement is more difficult now than ever. Tehran is deeply enmeshed in the Israel-Lebanon conflict. The nuclear deal is in tatters. Sanctions have crippled the economy. And this week, the United States accused Iran of sending ballistic missiles to Russia and imposed new sanctions.

Still, regional diplomats and officials say, the developments this week are unlikely to derail Iranian President Masoud Pezeshkian’s efforts to bring his country out of isolation, which one Arab diplomat described as the country’s “only option.”

“In this case, time is not on Iran’s side,” said the diplomat, who meets regularly with Iranian officials, and who spoke on the condition of anonymity due to the sensitivity of the subject. He said Iran appears eager to secure some kind of progress toward engagement to relieve domestic and international pressures.

When Secretary of State Antony Blinken announced the sanctions Tuesday, he addressed Iran’s diplomatic overtures directly.

“Iran’s new president and foreign minister have repeatedly said that they want to restore engagement with Europe, they want to receive sanctions relief,” he said. “Destabilizing actions like these will achieve exactly the opposite.”

The sanctions appear milder than expected, when European countries warned Iran that ballistic missile transfers to Russia approximated a “red line” in the Ukraine war. The measures largely target Iran’s civil aviation and could take months to go into effect.

Iran’s Foreign Ministry said the weapons transfer allegations were a “vile propaganda ploy and a blatant lie.”

The ballistic missile deal with Russia, which the Treasury Department alleged was negotiated long before Pezeshkian took power, is an example of how Iranian policy often plays out on two tracks, according to Nicole Grajewski, a fellow at the Carnegie Endowment.

“While civilian leadership may push for reform or diplomacy, the military and security apparatus maintains its own long-term goals, often independent of the political leadership,” said Grajewski, who is the author of the book “Russia and Iran: Partners in Defiance from Syria to Ukraine.”

Just a few months into his term, Pezeshkian is juggling multiples crises at home and abroad.

The war in Gaza has dragged on for nearly a year, and in that time Israel has traded nearly daily fire with Hezbollah, Iran’s most powerful allied militia. Domestically, Iran’s economy has repeatedly hit record lows. And widespread frustration over the use of heavy-handed tactics by security forces continues to simmer.

After the killing of Hamas leader Ismail Haniyeh in Tehran in July, Iran vowed a “decisive” response. That was over a month ago. U.S. officials believe that every day that passes lessens the chances of a major incident and escalation, although additional American military assets remain in the region as a deterrent.

Since Pezeshkian’s election, Iran has indicated to the Biden administration that it is interested in talks, but U.S. officials are waiting for signs of support from Iran’s supreme leader, who is the ultimate decision-maker.

“By standing with Russia in its war, Iran is defending its interests and existence,” said a Lebanese official who deals regularly with Tehran, speaking on the condition of anonymity to discuss a sensitive matter. The official said the most recent sanctions on Iran are part of a policy to put it under “constant pressure,” but recently, he said, that approach appears to be yielding diminishing returns.

“These sanctions have become a double-edged sword,” he said, adding that they have crippled Iran’s economy and ability to project power but have also necessitated stronger ties with countries like Russia.

Iran has continued to advance its nuclear program and thwart international inspectors. Uranium-enrichment experts have been barred from inspection teams and Iran has failed to explain uranium traces found at undeclared sites.

But at a board of governors meeting this week in Vienna, U.N. nuclear watchdog chief Rafael Grossi said Pezeshkian agreed to meet to discuss improving cooperation. “I encourage Iran to facilitate such a meeting in the not-too-distant future so that we can establish a constructive dialogue that leads swiftly to real results,” Grossi said in a statement.

When asked by reporters if the “not-too-distant future” meant after the U.S. election, Grossi responded: “No, hopefully before that.”

Reviving the 2015 nuclear deal had been a priority for the Biden administration. Talks progressed enough that in 2022 the two sides were reviewing “final” texts of a potential agreement, but failed to secure a breakthrough. The deal had curbed Iran’s nuclear program in exchange for sanctions relief, but collapsed when then President Donald Trump withdrew in 2018 and imposed new “maximum pressure” sanctions on Iran.

Iran’s president campaigned on promises to improve the economy by ending isolation. And as he built his cabinet, his appointments reflect a greater emphasis on diplomacy. Former foreign minister Mohammad Javad Zarif, who negotiated the 2015 nuclear deal, was appointed as strategic vice president. And career diplomat Abbas Araghchi, another member of the nuclear negotiating team, is Iran’s new foreign minister.

“He has all the right people in place,” said Sina Azodi, an expert on Iran and a lecturer at George Washington University, of Pezeshkian’s government formation. “The question is if he can get the approval of [Ali] Khamenei,” Iran’s supreme leader.

Over the past month, Pezeshkian has appeared to go out of his way to keep Khamenei on his side, Azodi said. “It’s a kind of bear-hugging” approach, he said, that could serve Pezeshkian well if he comes under fire from Iranian conservatives opposed to engagement.

Khamenei addressed Pezeshkian’s cabinet directly last month.

“We do not have to pin our hope to the enemy. For our plans, we should not wait for approval by the enemies,” Khamenei said in a video broadcast by state television. “It is not contradictory to engage the same enemy in some places. There’s no barrier.”

The comments, while vague, were interpreted by many as opening the door to potential talks with the West. But in the same address, Khamenei included a warning: “Do not trust the enemy.”

Iran’s supreme leader “has always provided a little bit of leash to his governments to test the waters and see what they can achieve,” said Suzanne Maloney, director of the foreign policy program at the Brookings Institution and an Iran expert.

But what kind of deal would even be possible is unclear.

“The structure of what worked 10 years ago is essentially inconceivable today,” she said.

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