This is not likely,as they are from one of the radical Muslim sects that have fought wars with Iraq in the past. They would be more likely to use nukes against him than they would be Israel. After all,he has killed more fundie Muslims than any other nation on Earth.
An Iraq with nukes can blackmail the Middle East thus threatening our access to MidEast oil.
Make up your mind. He either supplies other Arab countries with nukes,or he threatens them with nukes (my choice as the most likely). Which is it?