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Peace between Israel and Iran will become possible if a new regime takes hold in Tehran, Prime Minister Benjamin Netanyahu told German tabloid Bild yesterday.

"There is no conflict between the Iranian people and the people of Israel and under a different regime the friendly relations that prevailed in the past could be restored," Netanyahu said.

"What would be good news for Israel is a regime that stops crushing dissent, stops supporting terror and stops trying to build nuclear weapons," he said.

The prime minister said he believed "the true nature of the Iranian regime has been unmasked. You can actually see the lack of Iranian democracy at work ... If [the Iranian people] had a free choice, I have no doubt they would have a different government. What we have seen in Iran is a powerful desire on the part of the Iranian people to be free."

Commenting on the Iranian nuclear program, Netanyahu said he believed it could damage regional stability and it threaten the entire world.

He went on to say that the goal right now should be preventing nuclear development.

"Iran sponsors terrorism and it could very well give a nuclear umbrella to terrorism and possibly provide nuclear weapons to terrorists," the prime minister said.

"It could act in ways that nuclear powers have not done so up to now. This is a very great danger."