Israel refuses to resolve the Palestinian issue and actively works against a two state solution by building illegal settlements. Israel then uses the threat of a nuclear Iran to draw attention from the settlement enterprise. However, Israel's undisclosed arsenal stands out as the elephant in the room, and so affectively scuttles any chance of a consensus on Iran. Looks to me like Israel can have peace with the Palestinians and temper the Iranian threat, OR it can continue its nefarious ways in the occupied territories and antagonise other ME states into a nuclear arms race... Which option sounds sensible to you?
Jerusalem stabbing: Assailant shot dead after attacking 3 police officers (Haaretz)