Netanyahu has reason to be afraid and hide the fear behind offense: He has lost Israel as a Jewish state. The Zionist intransigence in agreeing to a Palestinian state leaves no other choice but to integrate Palestinians into a combined unified state. That state will not have a Jewish majority. Netanyahu thinks he can avert the disaster of his own making by oppressing the Palestinians in increasingly extreme ways. That will not wash with the international community and the people of the world. Israel itself - not Iran - will have pushed Israel off the map.
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Preliminary report: Stabbing attack in Jerusalem near Damascus Gate (Haaretz)
from the article: New Palestinian peace plan may force Israel into action