Israel’s Plan B on Iran: Paralyzing Sanctions?

After U.S. Vice President Joe Biden stated last week that Israel would decide for itself whether to attack Iran, a senior Israeli government official offered a "Plan B" of paralyzing sanctions against Tehran as soon as it is established that there is no hope for a dialogue: "Israel is adjusting its messages to the new circumstances created by the unrest in Iran… These things must be stated clearly now so that there is no confusion about our position.”

The official added:

Before the protests in Iran began, Israel's assessment was that the planned American-Iranian dialogue had little chance of succeeding. But in light of the protests, and the need of Iranian hard-liners to shore up their rule, Israel's intelligence community believes the chances of the dialogue even beginning, much less succeeding, are near zero… In the situation that has arisen following the protests in Iran, there is much greater international readiness for harsh steps against the regime in Tehran.

However US officials reportedly have again rejected Israel’s Plan B because the groundwork for stiffer sanctions would signal that the Obama Administration is not serious about dialogue with Tehran.

So back to Square One. What is Tel Aviv's next step in the manoeuvres between the US and Iran?