What is your source for "launch nukes on Moscow"? And how on Earth would they make it look like it came from the US.?

An actual development has been report by Avner Cohen, in which Israel prepared to conduct a demonstration explosion in the Sinai during the Six-Day War. That was under Rabin.

In general, possession of the bomb does serve as a "bargaining chip" for continuing US support toward insuring Israel has a Qualitative Military Edge (QME) in the Middle East and, thus, will not find itself in need of resorting to nuclear warfare.

The current conflict does not put in doubt Israel's QME -- far from it -- so their is no need to be concerned about nuclear escalation in the Middle East in the foreseeable future.