As Donald Trump prepares to return to the White House, a reported meeting between Elon Musk and Iran's UN envoy suggests an unexpected opening in diplomatic channels. 

The New York Times reported that Musk, a close Trump adviser recently named to lead government efficiency efforts, met Iran's UN Ambassador Amir Saeed Iravani for over an hour in New York on November 11.

Two Iranian sources described the meeting as "positive" and "encouraging", saying it provided a way to communicate indirectly with the US while avoiding direct official contact. On the same day, officials in Iran, including the president and foreign minister, talked of softening their stance towards the US.

Trump's campaign communications director, Steven Cheung, declined to comment on "private meetings that may or may not have occurred". 

According to an Iranian foreign ministry official who spoke to the Times, Iravani proposed that Musk seek sanctions exemptions from the US Treasury to bring some of his business operations to Tehran. It is still unclear if Musk sought the meeting as part of his sprawling business empire or in the form of an informal emissary of the Trump administration.

Iran's mission to the United Nations officially declined to comment on reports of the meeting, "We have no comment on this matter," an Iranian mission representative told Russian TASS news agency when asked about the New York Times report of the meeting.

The timing is significant as countries prepare for Trump's return to power. His previous term saw the US withdraw from the Iran nuclear deal, impose maximum pressure sanctions, and order the killing of General Qassem Soleimani.

"Many of Trump’s official appointees are ideologues who will likely obstruct diplomacy, but pragmatists like Musk offer a glimmer of hope for successful negotiations," said Sina Toossi, a senior fellow at the Centre for International Policy, on X.

The meeting suggests potential back-channel diplomacy as Trump faces complex regional challenges, including the Israel-Hamas war that has drawn in Iranian-backed groups like Hezbollah, which Iran backs.

Foreign Minister Abbas Araghchi signalled openness to dialogue, writing on X: "Differences can be resolved through cooperation and dialogue. We agreed to move forward with courage and goodwill. Iran has never left the negotiation table regarding its peaceful nuclear programme."

However, critics warn that Trump's strong support for Israel and choice of hawkish advisers like Marco Rubio could derail any diplomatic progress. Iran remains sceptical of his ability to deliver agreements over hardline opposition.

Farzan Sabet, an Iran foreign and security policy expert, noted, “To what extent is Musk freelancing, versus following the line of President Trump? Additionally, would a policy of engagement survive contact with US foreign policy and national security institutions, which (with two exceptions) are set to be headed by Iran hawks?” 

bne IntelliNews reported earlier that Musk’s Starlink internet satellite services have been sold illegally in Iran through smuggling operations. The dishes were reportedly on offer at $1,900, with pre-orders being taken from across the country, which is struggling with internet blackouts brought in by the authorities attempting to put an end to the anti-regime protests that have rocked Iran since mid-September. bne IntelliNews cannot verify the sales are genuinely taking place.

Still, enquiries have been sent to Baneh, a city in Iran’s Kurdistan Province renowned for its smuggled goods, on the prevalence or otherwise of the reported smuggling racket.

Following the Musk meeting with Iran’s UN team, Heshmatollah Falahatpisheh, a former Iranian MP, criticised the government for focusing its energy on domestic hardliners rather than pursuing a strategy of de-escalation.

"The current administration has expended part of its energy, which could have advanced a détente policy, on engaging with extremists within the country," he said, describing this approach as "one of the government's mistakes".

Falahatpisheh argued that after the elections, the administration missed an opportunity to use its political capital to foster regional and international rapprochement. "They could have directed electoral energy and victory towards a serious de-escalation plan, one that would have maintained the possibility of practical rapprochement between Iran and Arab states," he explained.

He also pointed out that dormant diplomatic channels, particularly with the United States through intermediaries like Oman, could have been reactivated to prevent escalating tensions. Referring to the shifting US political landscape, Falahatpisheh remarked: "With the new administration in the United States, I believe Mr Trump, while designing the maximum pressure campaign, will also seek to establish a diplomatic channel with Iran. Therefore, Iran should not abandon diplomacy with the United States."