Lyse Doucet says Iranians want a solution to the long-running animosity with the US, but leaders is not willing to make a deal on Washington's terms.
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A 10-day truce between the two countries is now in effect, with Iran-backed Hezbollah voicing support, as negotiations continue between the US and Iran.
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Few Israelis see this truce as a way out of the conflict with Hezbollah, the BBC's Lucy Williamson writes.
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The chancellor was speaking at the end of the International Monetary Fund meeting in Washington.
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Some of the most hotly anticipated new films of the next couple of years are previewed at CinemaCon.
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