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I don't know about Iran, they may be "volatile" however I believe them to be more stable than perhaps some other regimes, giving them Nukes elevates them to the same level as the US/UK/France/Germany/god know who else in that they have nukes, the question is would they use them? In this I am more inclinded to say that they are more likely to than the countries I listed (IMO).
What I am more worried about is Israel, currently its well funded by the US and has a good military. Palestinian attacks are responded to however Israel is always in the wrong (I don't understand this part). However if the peace protesters get their way and the US stops funding Israel I would not be surprised if that ends up with someone going Nuclear.
Well my 2cents, possibly not useful however...
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