You're right and hopefully the "exercise restraint" is said with a wink and a nod.
I htink that "exercise restraint" line is just boilerplate inserted into ny statement on the Middle East. Besides, Israel IS exercising restraint: they are warning civilians to get out of the way, and they haven't bombed Iran yet.
Wolfie is doing his best to get Dan Bartlett to say that Israel is the bad guy...and it isn't working...
Wolf REALLY, REALLY dislikes Israel it seems to me.