Policy towards Israel in the Arab world is all about saving face with the "street". If Israel goes relatively public with its capabilities, the "street" will demand of Arab governments that to save face they develop nuclear capability as well. Then, instead of just worrying about Iran, Israel may have half a dozen nuclear neighbors-any one of whom can become the home of a radical government some time in the future. Israel is trying to avoid having to play 10 dimensional chess.
Security cabinet meeting convened to assess security situation in Israel's south ends (Haaretz)
from the article: Israel's nuclear ambiguity may be nearing an end
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