Israel is preparing for an Iran with nuclear capabilities within the next 12 months, according to a report by the Institute for National Security Studies (INSS), an Israeli think tank.

The U.K. daily Times newspaper published extracts of the report by the Tel Aviv University institute on Monday, according to an AFP report.

The INSS was asked to prepare possible scenarios in case Iran carries out nuclear weapons tests by security, intelligence and diplomatic officials, AFP reported the Times as saying.

According to INSS predictions, Iranian nuclear weapons tests would change the balance of power in the Middle East region.

If Tehran carries out nuclear weapons tests, the U.S. will offer Israel a defense pact, but would urge Israel not to respond with an attack on Iran, according to AFP.

Russia would be expected to sign a deal with the U.S. in order to prevent armament in the region, and Saudi Arabia would be likely to develop its own nuclear capabilities, according to the report.

On Monday, the UN International Atomic Energy Agency confirmed that Iran had begun uranium enrichment at Fordow, near the Shi’ite holy city of Qom, and said all atomic material there was under its surveillance.

Diplomats in Vienna, home of the IAEA, said earlier on Monday that Iran had begun refining uranium to a fissile purity of 20 percent at Fordow.