The bombing in New Delhi and attempted bombing in Tbilisi directed against Israeli diplomatic targets is a major escalation of the tit-for-tat terrorism between Israel and Iran. Israel has killed four Iranian scientists using Mujaheddin e Khalq agents and possibly also relying on intelligence provided by Washington. Israel’s involvement in recruiting Jundullah-Baluchi militants using officers pretending to be American CIA was recently revealed in the US media. Iran is now signaling that it too has surrogates and is willing to respond in kind. An interesting subplot is the location of the two attacks in India and Georgia. Iran certainly has covert resources among India’s large Muslim population and also within the significant Azeri minority in Georgia. Israel has been courting India and sees a strategic relationship developing, i.e. the two united against Muslim insurgency. Israel also has a not-so-secret military and intelligence base in Georgia and has recently expanded into nearby Azerbaijan, where it has established an intelligence listening post at an airbase. Iran is surrounded by the Israeli operational initiatives and is now signaling that it is prepared to strike back. A back and forth series of assassinations is particularly dangerous as it could produce the type of incident that might lead to open hostilities between the two countries, a conflict that would ignite the region and inevitably result in United States involvement.