If Israel does not respond, it will lead to an ever-increasing escalation by Israel’s many enemies. You MUST punch the school yard bully in the nose. There’s no other way to gain his respect.
My suggestion is to fire several cruise missiles at Kharg Island and have them detonate just before they’d so any damage. It will pucker Iranian butts as all of their oil leaves via Kharg Island. There isn’t even a bridge, so they’d be years rebuilding it. The message would be clear, and they’d stop being so dramatic.
Politically, Netanyahu MUST respond.
My suggestion to Israel, if they could get airspace clearance from Jordan and Saudi Arabia (unless they do it from the Gulf of Oman) would be to damage Iran’s naval facilities on the Strait of Hormuz to make it hard for Iran to close the strait. That’s how Iran has exerted control in the past over Iraq, Kuwait, Qatar, and UAE. I’m sure those nations would appreciate Iran no longer being able to screw with them.