US President-elect Donald Trump is considering former Director of National Intelligence Richard Grenell as his special envoy for Iran, sources familiar with the matter told Reuters, signalling a potential shift in Washington's approach to Tehran.

This posting is the latest potential overture from the Trump team to Iran, which has softened its stance against the incoming administration and radically repositioned itself in the Middle East, including pulling its support and troops for both the former Al-Assad regime and Hezbollah in Lebanon in recent weeks, ultimately leading to the downfall of the Assad regime.

Grenell, 58, who served as Trump's ambassador to Germany and acting intelligence chief during his first term, emerged as a leading candidate after being initially considered for a position focusing on Ukraine, which ultimately went to retired General Keith Kellogg.

The appointment, if confirmed, could indicate Trump's openness to potential negotiations regarding sanctions and Iran's nuclear programme, despite his recent calls for strikes on Iranian nuclear facilities following Tehran's attack on Israel, the sources said.

Washington and Tehran have had no official diplomatic relations since the so-called Iran Hostage Crisis in 1981. Fifty-three United States diplomats and citizens were held hostage in Iran from November 4, 1979 to their release on January 20, 1981, which led to the downfall of the Carter administration. 

During his election campaign, Trump had indicated a more conciliatory approach towards Iran but has since advocated stronger support for Israel and stricter sanctions on Iranian oil.

Grenell's diplomatic experience includes serving as Trump's special representative for Serbia-Kosovo peace negotiations, though those talks stalled following developments at The Hague's war crimes tribunal.

Iranian President Masoud Pezeshkian has openly suggested the government in Tehran is open to negotiations with the incoming administration.

Earlier in November, the world’s richest man, Elon Musk, was caught on camera leaving a meeting in New York with the Iranian UN diplomatic team, suggesting negotiations are already ongoing between the two countries.

Musk later denied that the meeting had ever occurred despite being caught on camera by the New York Times; several people speculated that his interest in Iran stemmed from securing lithium supplies for his electric car company, Tesla. Iran's reserve boasts 8.6mn tonnes of lithium carbonate equivalent (LCE).

However, Iranian officials have privately expressed concerns about withstanding increased economic pressure, particularly regarding oil exports to China and domestic natural gas supplies.

Trump is expected to take office on January 20, but sources cautioned that no final decision has been made regarding either the envoy position or broader Iran policy.