CIA Director William Burns on Monday cautioned about the potential for regional clashes in the Middle East to spiral further, even though U.S. intelligence has assessed that neither Iran nor Israel is actively seeking "all-out conflict."

"We face the very real danger of a further regional escalation of conflict," Burns said at the annual Cipher Brief threat conference in Sea Island, Georgia.

He emphasized that while Israeli leadership is "weighing very carefully" how to respond to Iran's recent ballistic missile attack, the possibility of "misjudgments" could still trigger unintended escalation. Burns added that the Middle East "is a place where complicated stuff happens all the time."

Burns highlighted the importance of intelligence-sharing between the U.S. and Israel, which, along with "strong" integrated air defenses, helped thwart a large-scale missile attack from Iran on October 1. He noted that the attack had revealed "limitations" in Iran's military capabilities, but cautioned that "those capabilities are still quite potent and something both Israel and the U.S. need to take seriously."

Burns, who was involved in negotiating the 2015 nuclear deal that restricted Iran's uranium enrichment program, stated that the CIA has not observed any signs that Iran's Supreme Leader Ayatollah Ali Khamenei has resumed efforts to develop a nuclear weapon.

"We do not see evidence today that the Supreme Leader has reversed the decision that he took at the end of 2003 to suspend the weaponization program," he said. However, he acknowledged that Iran is now "much closer" to being able to produce a bomb, with a breakout time of "a week or a little more."

Reflecting on the one-year anniversary of the Hamas-led attack on southern Israel, which resulted in over 1,200 Israeli deaths and the abduction of more than 250 people, Burns shared his hope for a diplomatic resolution. Over the past year, he has been working with officials from Qatar, Egypt, and Israel to negotiate a ceasefire and secure the release of hostages held in Gaza.

"We've come close at least a couple of times, but it's been very elusive," Burns remarked, noting that progress had recently stalled after Hamas leader Yahya Sinwar ceased responding to updated proposals. Burns stressed that "what's at stake in Gaza is shaped by political will," adding that "in the end, it's not just about brackets in texts or creative formulas... It's about leaders who ultimately have to recognize that enough is enough."

Burns concluded by underscoring the need for leaders to make "hard choices" and compromises to achieve long-term stability.

"Perfect is rarely on the menu, especially in the Middle East," he said, urging for a strategic path forward.