This nuclear project will undoubtfully boost Iranian military image. I think that the US interests in the oil-rich Arab states is what the Iranian threat is about. Because if Iran was not subjected to a major strike that extends to more than just their nuclear facilities, they are obviously becoming the next major broker in the region. I suspect that Iran, in contrary to the claims of their loud presiden, has very little interest in beginnig a conflict with Israel, even looking at Israel as a US proxy against it, somehow Israel seems hesitant this time to act out to American ends. Iranians are naturely more interested in Iraq and the Persian Gulf. Attacking Israel, regardless of the dire consequences, has no sense and will practically achieve nothing on the ground for them. Both Israeli and Iranian governments keep up their rhetoric though. Just to leave their options open.
UN: At least 1,332 Iraqis killed by violence in July (AP)
from the article: Let them have nukes