I'm more concerned about Iran's internal human rights record than any international implications. Khamenei is vocally very anti-nuclear weapons, and his fatwas aren't things to be taken lightly. They are, of course, concerned about increasing US control in the region, and are mounting a show of bravado as a result of that.
But keep in mind that they're entering an election cycle. The conservative forces (particularly Ahmadinejad) will try to up the nationalistic rhetoric as part of their election strategy. I'd expect a lot more sabre-rattling over the next year.
Hopefully, one of the reformists will win next year. All signs point to a swinging of the pendulum back toward the reformists; Ahmadinejad's popularity has been declining, and his candidates lost ground in the Assembly of Experts, which is now controlled by the moderate Rafsanji. If Rafsanji were to run again, he'd have a solid shot at winning; he's not one of the more radical reformers, but he's in favour of negotiating a nuclear deal with the west, among other reform policies.
The biggest issue with Iran is what happens when Khameni dies (and I haven't seen any reports that his health is suspect, so this may not happen for another decade or more). If it were to happen right now, Rafsanji and the Assembly of Experts would likely end up installing a more moderate and reformist Supreme Leader. But the Revolutionary Guard has become so powerful under Khamenei, and what would happen if they don't support a more moderate Supreme Leader who would probably reduce their powers? A peaceful transition to a more moderate leader would be great, but violent internal struggle would be awful for the whole region.
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