in 1980, Israel just barely came out of 3 major wars that could have lead to it's extinction were they to be mishandled. It is clear that the nuclear weapon Israel posseses would only be used as a last resort before extinction. And Israel was expecting the next war to be just as dangerous as the previous 3. However, Israel was able to greatly reduce the threats imposed on it by surrounding states to a few mere terror organisations with basic weaponry. Israel would probably not consider using it's nuclear weapons unless it is really facing extinction.
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Preliminary report: Shooting attack in East Jerusalem's Damascus Gate (Haaretz)