They are going to develop it anyway, it's 1940's technology. If Iran developed a peaceful nuclear program, with Israeli help, it would be very difficult for the Ayatollah to then convince the Iranian people that they must enhance the program to weapons grade because of the threat from Israel. And even if they did, wouldn't it be better to have developed relations prior to that day?
Exit polls predict Portugal's center-right coalition set to win election (Reuters)
from the article: Obama's problem, Saudi Arabia's concerns and Israel's new goals