After the 1979 Revolution , Iran severed all diplomatic and commercial ties with Israel , and its Islamic government does not recognize the legitimacy of Israel as a state . The turn from cold peace to hostility started in the early 1990s , shortly after the collapse of the Soviet Union and defeat of the Iraqi Army during Desert Storm , after which relative power in the Middle East shifted towards Iran and Israel . The conflict escalated in the early 1990s , as Yitzhak Rabin 's government adopted a more aggressive posture on Iran . Rhetorical conflict heated up during the presidency of Mahmoud Ahmadinejad , who made inflammatory statements against Israel . Other factors which contributed to the escalation of tensions include Iran 's development of nuclear technology relative to Israel 's long-stated Begin Doctrine , Iranian funding of groups like Hezbollah , Islamic Jihad and Hamas , and alleged involvement in terrorist attacks such as the 1992 attack on Israeli embassy in Buenos Aires and the 1994 AMIA bombing , alleged Israeli support for groups like People 's Mujahedin of Iran or Jundallah and alleged covert operations in Iran including assassinations and explosions
AMIA bombing
AMIA bombing
Iran–Israel relations