Iran is entrenching a dual-track strategy of guarded diplomacy and heightened military readiness as indirect nuclear talks with the United States remain stalled, deepening uncertainty across the Middle East.

At the center of the standoff is Tehran’s expanding stockpile of highly enriched uranium. Mohammad Eslami, head of the Atomic Energy Organization of Iran, reiterated that Iran will not halt enrichment and will only consider diluting its 60% enriched uranium if all international sanctions are lifted first. That level, far above the 3.67% cap set under the 2015 nuclear deal, is technically short of weapons-grade but significantly reduces the time needed to produce material suitable for a nuclear weapon.

Eslami also rejected proposals to ship enriched uranium abroad, a mechanism previously used to lengthen Iran’s “breakout time.” His stance was reinforced by Iran’s president and foreign minister, who described the latest contacts with Washington as a “good start” yet insisted any agreement must be based on “respect, not coercion.” Iranian officials argue that the United States, having withdrawn from the 2015 accord, must move first by lifting sanctions that have crippled Iran’s economy.

Alongside its diplomatic posture, Tehran is recalibrating its military signaling. Iran’s state news agency reported that the Defense Ministry has ordered an end to public displays of new weaponry to “safeguard the principle of surprise.” Analysts say the shift from showcasing missiles and drones to cultivating opacity suggests Iran wants to keep adversaries guessing about its capabilities and readiness, while preserving leverage at the negotiating table.

The strategy is reverberating across the region. Israeli officials have warned they “will strike alone” if Iran crosses ballistic missile “red lines” or moves closer to weaponization. Israel views Iran’s missile program and enriched uranium stockpile as an existential threat and has been accused by Tehran of covert sabotage and targeted killings aimed at slowing Iran’s nuclear advances.

Diplomatic channels, however fragile, remain open. A senior Iranian security delegation is due in Oman, a frequent intermediary between Tehran and Washington. In parallel, Israeli Prime Minister Benjamin Netanyahu is preparing for talks with U.S. President Donald Trump, where he is expected to press Washington to demand that Iran transfer its enriched uranium out of the country as a precondition for any broader understanding.

Together, these moves underscore a precarious balance: Iran is keeping the door to diplomacy ajar while signaling it is prepared for confrontation if negotiations fail.