DUBAI—Iran has been urgently signaling that it seeks an end to hostilities and resumption of talks over its nuclear programs, sending messages to Israel and the U.S. via Arab intermediaries, Middle Eastern and European officials said.

Smoke and missiles have lit up the skies in Israel and Iran in a fierce standoff triggered by fears over Tehran’s expanding nuclear program. Since June 13, hundreds of military strikes have been exchanged as the two nations remain locked in a conflict that shows no signs of abating.

The two powers have been exchanging barrages since Israel attacked Iran and killed many of the country’s top military leaders and scientists.

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A dramatic spike in the potential for all-out war between Israel and Iran would typically be expected to spark an immediate and strong rally in the U.S. dollar, with investors seeking the safety and liquidity of the world's reserve currency.

The conflict between Israel and Iran has wreaked considerable damage in both countries and caused casualties on both sides