Nuclear threats in the Middle East

I was reading for school in the Current Events magazine, and we had to read a specific article, which was about the recent threats of nuclear weaponry and attacks in the Middle East. The IAEA, or International Atomic Energy Agency, reported evidence of Iran building nuclear weapons. But they only denied it, explaining that they just wanted to use nuclear energy in a peaceful manner.

(for more info about this go to http://www.americanprogress.org/issues/2011/12/nuclear_iran.html )

Even though this doesn't concern America as much as it does places like Israel because of conflicts between the two countries, it still kinda scares me a bit. I think this could, if escalated enough, start a third world war. And, our country is in no state to help wars because of the economy.