Can istio transparently do proxy resolution for a pod with a sidecar?

Firstly - loving istio - truly amazing!!!

Can istio transparently do proxy resolution?

Here is the setup:

  1. My enterprise has an AKS cluster
  2. In the AKS cluster we have Istio (latest) up and running.
  3. My service is running inside AKS and my pod has sidecar injection enabled.

My service needs to access two external services - and is a service that is running in a private network on enterprise premises, NOT on Azure Cloud.

The only way to access is to specify an HTTPS_PROXY which points to proxy.enterprise-proxy.svc.cluster.local.

This proxy (running inside AKS) knows how to get requests from AKS to on-premise infrastructure, navigating all the fancy network peering.

I dont however need the HTTPS_PROXY to access

Currently I am solving this problem the usual way - with NO_PROXY

What I would like to be able to do:
Define a Virtual Service for host: and egress out of AKS.
Define a Virtual Service for host:, defining proxy.enterprise-proxy.svc.cluster.local as the HTTPS_PROXY to use for it, and egress out of AKS.

What would I achieve with this?
My service does not have to manage a NO_PROXY based on what it needs to do, and the service mesh can handle figuring out how to reach an external resource.

Is there something in the Istio toolset that can help me achieve this?