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According to their Defense Minister Ehud Barak, it's undefined borders, not Iran:

Defense Minister Ehud Barak on Tuesday said that Israel's failure to strike a peace deal with the Palestinians was a greater threat to the country than a nuclear Iran, Army Radio reported.

"The lack of a solution to the problem of border demarcation within the historic Land of Israel - and not an Iranian bomb - is the most serious threat to Israel's future," Barak told a Tel Aviv conference.

It doesn't seem like his boss agrees.

(AP Photo)