Yeh,, I read that Israeli statement too. It doesn't get more direct than that!
To quote some lyrics from Jethro Tull: "It's hard to find true equilibrium... When you're staring at each other down the muzzle of a gun."
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In conclusion, Iran is just showing off and trys to put some pressure on Isreal and her allies.
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And let us not forget, Saddam's (non-existent) WMDs were also an attempt to "show off" and stave off attacks from Iran. His "ruse" was good enough to fool a lot of people too. And what did it get Hussein? An invasion...
So, who's zoomin' who?