This study examines Israel's changing perception of Iran and the underlying reasons for the current Israeli tension, anxiety, verbal acrimony and fears. In deconstructing Israel's fears vis-à-vis Iran, the study looks at Israel's failures to revisit its erstwhile peripheral diplomacy and to make adequate changes. Israel was unable to overcome the nostalgia of the past bonhomie and evolve a cohesive policy on Iran. Moreover, it was afraid of the cost of such a radical shift in its fundamental plank vis-à-vis Iran: the peripheral diplomacy. With the result, Iran soon became a nightmare for Israeli foreign policy and the security establishment. The nuclear controversy is just a recent addition. Given the growing importance of Israel and Iran to India, what are New Delhi's options vis-à-vis the Israel-Iran tensions?
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