It looks like they want to attack Iran. Seymour Hersh, who breaks the story, is usually reliable.
Hersh says that they are mulling tactical nukes. I think that much is bluster - it's the old strategy, indulged in by many six-year-olds, of proposing something totally extreme, to make something less extreme seem not so bad.
But it's very easy to believe that they will attack Iran, because it's the MO of these maniacs. Just like Iraq, they've had a hard-on for attacking Iran since before Bush was even in office, and they have needed an excuse. And just like Iraq, Iran is worth a whole lot of money to George's cronies.
The fact that Georgie's Iraqi Adventure turned out to be so disastrous has forced them to put Iran on the backburner. But now poor George sees the possibility of attacking Iran slipping away with the passage of time. So of COURSE he needs to figure out how to do it before he leaves office. He may never have another chance. And he needs war to make him feel like a man. As long as somebody else does the actual fighting.
Of course, you would think that the fact they they've completely decimated the United States Army would slow them down. But they can always withdraw from Iraq to give them a few extra troops for Iran.
I think that by November, George will suddenly pull out of Iraq and leave them to rot - Iraq is no longer useful to him. And then announce the invasion of Iran, on the grounds that Iran is a terrible danger to us all. And he will claim that he needs no Congressional approval, because the authorization to invade Iraq was really ALSO an authorization to invade Iran.
What may stop him? A serious outcry from the hard-right. George couldn't care less if such an action is opposed by almost every human being in America. He only cares if it's opposed buy right-wing extremists. If the Republican Congess can convince him that it would be POLITICALLY disastrous (Bush couldn't care less about any other kind of disaster) that may do it.