If true, this highly dangerous agreement would give
It is almost certain to further intensify regional tensions. Iranian hardliners will interpret it as further evidence that they are surrounded and threatened with an existential threat. This in turn may lead them, heady with their recent victory over domestic opponents, both to crack down on dissent at home and to engage in adventures abroad. Such a domestic crackdown would further exacerbate internal discord, probably making the hardliners feel even more isolated and threatened. Regionally, it could contribute to any number of tension-raising acts, from an intensified arms race to actual steps to “teach the Saudis a lesson.”
That would endanger the whole
As for the Israeli people, they lose in three ways. First, while war may be very useful for politicians, it is bad for people--they do the dying, and the probability of war has just risen. Second, this will encourage Israeli hardliners and thus make all the more difficult resolving the Israeli-Palestinian dispute. Third, both of these results will further undermine Israeli democracy. Democracy does not do well in an environment of rising militancy and racism.
Whatever else the publication of this rumor does, it directly undermines Obama’s professed policy of solving