Israel has nothing to fear if Iran eventually acquire nuclear. First, Iran cannot attack Israel with nuclear bomb because of the known consequences of Israelis retaliation with even more powerful nukes. Second, the ME will see some kind of stability as the nukes will also serve as deterrent to each other. My belief is that, let Israel grants Palestinian statehood, all this fear of war and animosity will go and Israel will enjoy excellent relations in the ME and the world over.
Sunni Arab nations are 'Israel's allies,' says Israeli Foreign Ministry director general (JTA)
from the article: Report: Israel preparing for nuclear Iran within a year