The new Israeli government will not move ahead on the core issues of peace talks with the Palestinians until it sees progress in U.S. efforts to stop Iran's suspected pursuit of a nuclear weapon and limit Tehran's rising influence in the region, according to top government officials familiar with Prime Minister Binyamin Netanyahu's developing policy on the issue.

"It's a crucial condition if we want to move forward," said Deputy Foreign Minister Daniel Ayalon, a member of the Israeli parliament and former ambassador to the United States. "If we want to have a real political process with the Palestinians, then you can't have the Iranians undermining and sabotaging."