JERUSALEM -- 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."

The emerging Israeli position, a significant change from that of previous governments, presents a challenge for President Obama, who has made quick progress on Palestinian statehood a key foreign policy goal. Obama is also trying to begin engagement with Iran as part of a broad effort to slow its nuclear program and curtail its growing strength in the Middle East.

U.S. officials are wary of linking the two issues and, if anything, would like to do the reverse of what Israel has proposed, by using progress in the Israeli-Palestinian talks to curb Iranian influence, which is wielded in the region through anti-Israeli organizations such as Hezbollah and Hamas.

"We have to be pretty careful how you approach that kind of connection," said a senior U.S. official, speaking on the condition of anonymity because he was not authorized to speak publicly. "We are dealing with Iran because there are behaviors out there that are deeply troubling. We would be doing that regardless of other issues. By the same token, the Palestinian issue is an issue that obviously evokes a great deal in the region."