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The United States and Iran are set to resume nuclear talks on Friday in Turkey, officials from both sides told Reuters, as President Donald Trump warned that “bad things” would likely happen if negotiations fail, with U.S. warships moving closer to Iran amid heightened regional tensions.

U.S. Special Envoy Steve Witkoff and Iranian Foreign Minister Abbas Araghchi are expected to meet in Istanbul in an effort to revive diplomacy over Iran’s nuclear program and reduce the risk of a wider confrontation, according to officials familiar with the preparations.

Speaking at the White House on Monday, Trump confirmed a significant U.S. naval deployment toward the region while underscoring that diplomacy remains his preferred option. “We have ships heading to Iran right now, big ones, the biggest and the best, and we have talks going on with Iran,” Trump told reporters. “If we can work something out, that would be great. If we can’t, probably bad things would happen.”

U.S. officials said the talks could take place as early as this week, with Turkey acting as host and mediator.

Regional Mediation Effort Takes Shape

A regional diplomat told Reuters that representatives from several Middle Eastern countries, including Turkey, Egypt, Saudi Arabia, Qatar and the United Arab Emirates, are expected to be present in Istanbul for parallel consultations, highlighting a broader regional push to prevent escalation.

A Turkish ruling-party official confirmed that Ankara has been working behind the scenes to bring Washington and Tehran back to the negotiating table, describing the talks as a potential opening to de-escalate tensions following weeks of military signaling.

Iran’s Foreign Ministry spokesperson Esmaeil Baghaei said Tehran was reviewing “all dimensions” of the proposed talks, adding that Iran wants sanctions relief “as soon as possible.”

Red Lines and Competing Demands

According to Iranian and US sources cited by Reuters, the Trump administration has demanded three core concessions from Tehran as a basis for renewed negotiations. The demands include an end to uranium enrichment on Iranian soil, limits on Iran’s ballistic missile program, and an end to Iranian support for regional proxy groups.

Iran has publicly rejected these conditions as violations of its sovereignty. However, two Iranian officials told Reuters that Tehran views restrictions on its missile program, rather than its nuclear activities, as the most difficult obstacle.

The New York Times reported, citing regional officials, that Iran has signaled a possible willingness to halt or suspend parts of its nuclear program, though no formal proposal has been confirmed.

Iranian officials have said talks must focus strictly on the nuclear file, with Foreign Minister Araghchi stressing that Iran’s missile and defense capabilities are “not negotiable.”

Israel Consulted as Military Pressure Continues

Witkoff is expected to stop in Israel ahead of the Istanbul talks, where he is set to meet Prime Minister Benjamin Netanyahu, senior defense officials, and intelligence leaders, according to Israeli media.

Channel 12 reported that Israel will press Washington to maintain strict limits on Iran’s missile program and its regional influence. Israeli officials said Mossad chief David Barnea and Defense Minister Israel Katz are expected to participate in consultations.

Meanwhile, the U.S. Navy confirmed that an American missile destroyer that docked in Israel’s Red Sea port of Eilat last week has since departed following a scheduled visit, as part of broader US-Israel military coordination.

Iranian Leadership Fears Internal Fallout

Behind the scenes, Iran’s leadership is increasingly concerned that a U.S. strike could destabilize the country internally, Reuters reported, citing multiple current and former Iranian officials.

According to those accounts, senior officials have warned Supreme Leader Ayatollah Ali Khamenei that renewed external pressure, particularly a limited U.S. military strike, could reignite mass protests that shook the country last month following a deadly crackdown on demonstrators.

Several officials told Reuters that public anger has reached a point where fear may no longer deter unrest, raising concerns that any military escalation could weaken the regime’s grip on power.

Iran’s Foreign Ministry declined to comment on the reported internal discussions.

A Crisis at the Intersection of Diplomacy and Deterrence

The renewed diplomatic push comes amid one of the most volatile periods in U.S.-Iran relations in years. Nationwide protests in Iran late last year, driven by economic hardship and political grievances, marked the most serious domestic challenge to the Islamic Republic since 1979.

While the protests have subsided, U.S. intelligence assessments cited in recent reporting suggest the Iranian leadership remains under significant pressure, both economically and politically.

Iran has warned that any U.S. attack would be met with strikes on American forces and allies in the region, including Israel.