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Here is an interesting perspective that makes a lot of sense.
http://www.informationclearinghouse.info/article30606.htm
The real issue is the fact that Iran has upgraded its medium range conventionally-armed missiles with GPS technology, making its missiles much more accurate. This means Iran can now target Israel's own nuclear, bio and chemical weapons stockpiles, located inside Israel, as well as the Dimona nuclear reactor.
In short, Iran has achieved a conventional deterrent to Israel. Therefor, statements by Iranian officials that Iran has no nuclear weapons program are in my view probably correct. Presently, Iran does not need nukes to deter Israel. It can do so with its GPS-guided medium range missiles. The Israelis are no doubt gnashing their teeth over this, because they now find themselves threatened by their own WMD stockpiles, and by their own nuclear reactors, especially Dimona, all of which have become targets.
A few direct hits by Iran could cause a toxic plume, killing thousands of Israelis. A worst case might signal the end of the Jewish state.