A large part of the issue is what the U.S. demands as part of the two state solution for the Palestinians and what the Israelis are willing to do. Netanyahu declared during his recent re-election campaign that there would be no Palestinian state as long as he was Prime Minister. He backed off the statement by saying he wasn't altogether against it but now isn't the time.
Why not now? Because he is surrounded on two sides; by Hezbollah on one and Hamas on the other. Both are terrorist groups who have declared their intent to drive Israel from the face of the earth. I'd see no reason to negotiate either with that as the prevailing attitude.
For some reason, however, our President is determined to punish Netanyahu for not acquiescing to him. Obama wants him to embrace the nuclear negotiations with Iran. He's also determined to punish us by threatening to go around Congress with the secret details and go straight to the U.N.
To add insult to injury we have declassified what had been a secret agreement with Israel not to make public the extent of their nuclear program. That they have one is no secret, but to break our word and make the details available to anyone who cares to look does no more than insure there will be an arms race in the middle east.
I don't believe the Israelis would use them unless hopelessly cornered and I believe the only country that would try to corner them is Iran if they had the same capabilities. We're making it possible for them. Add to that the Sunni/Shite strife among the other countries you can bet everyone who can will get either a ready made bomb or the technology to make their own.
I'm sure negotiations have long been underway between the Saudis and Pakistan or North Korea. To me, Obama has now, with this latest action, set the match to the fuel that needed the smallest of parks to ignite the region.
Who knows how this will play out but it seems to be an awfully big risk just to justify his Nobel Peace Prize and pave the way for John Kerry to get his.