Relations between Iran and Egypt since the Islamic Revolution of 1979 represent a key variable in the geopolitical dynamics of the Middle East and can be understood through a multi-level analytical framework. This study seeks to explain the persistence of structural divergence between the two countries despite significant potential for convergence, and to assess the possibility of a gradual shift toward limited engagement in light of geopolitical developments, particularly after 2018. Using a descriptive–analytical approach, the research examines Iran–Egypt relations across three levels: domestic, regional, and extra-regional. It addresses two main questions: the factors behind continued structural divergence after 2018, and the conditions that could enable a transition toward managed interaction and limited convergence. Findings indicate that bilateral relations are characterized by “structural divergence with limited convergence capacity.” At the domestic level, ideological tensions between Iran’s revolutionary Islamism and Egypt’s security-oriented secularism sustain mutual distrust. At the regional level, competing alliance structures and geopolitical rivalries reinforce functional separation. At the extra-regional level, the strategic influence of external actors, particularly the United States, remains the most significant constraint on rapprochement. Nevertheless, evolving international conditions, reduced great-power intervention, and overlapping security and economic interests suggest the possibility of limited, managed cooperation in the long term. Overall, the future of Iran–Egypt relations depends on reducing external pressures, strengthening gradual diplomacy, and redefining shared strategic interests.