Iran and the West have mutual interests in the stability of Iran's neighbors, Iraq and Afghanistan, he argued, and Iran would like the foreign investment that would come with full Western acceptance, which might depend on a resolution to Iran's controversial nuclear program.

CNN: Iran's attacks on UK tap into centuries of suspicion

But Mr. Gross could get burned if euro-zone policy makers come up with a resolution to restore investors' faith in the region's bond markets and the euro in that case, Treasury bonds could sell off and lose ground to stocks, according to some other analysts.

WSJ: Pimco Fund Set for First Annual Outflow