#2 is right. That Iran is playing around with the world on the nuclear weapons development issue (no-one believes they aren't building a bomb any more) and there is really no defensive need for this. They are threatening at least 2 nations, Israel and the US, which have huge nuclear arsenals and second strike capability. Nuclear power? Stop subsidising your fuels and the black market losses will give you enough to compensate for a few reactors. They are clearly not bargaining for anything either, with unprecedented offers from all around the world. All this makes up my mind - they are going to build nuclear weapons and will begin nuclear blackmail which will be FAR worse than any consequences of sanctions or even airstrikes to destroy their facilities before they can enrich enough uranium. There is no nuclear power today that is bent on conflict and starting wars (Lebanon being Iran's first, by proxy). I very much fear waking up to hear that Iran has made its first test.
Army: Blast in Korean DMZ wounds two South Korean soldiers (Reuters)
from the article: ANALYSIS: Iran likely to push the boundaries of nuclear issue