The killing of Hezbollah leader Hassan Nasrallah in an Israeli airstrike has changed the security dynamics in West Asia. Israel's offensive has weakened Hezbollah but the group is not finished. Iran has been restrained in its response, with differences of opinion on how to proceed. President Pezeshkian prefers to avoid a region-wide conflict and focus on reviving Iran's economy. The US should incentivize Iranian moderates by renegotiating the Iran nuclear deal and lifting sanctions.