This interview by Bibi Netanyahu with the Wall Street Journal is well worth reading. In it, Netanyahu sets out a third way between diplomacy and military action that could stop Iran going nuclear: divestment. He argues that if Western firms got out of Iran then the Iranian economy would fall even further, hitting the economic elite hard. Netanyahu hopes that “when they see their own holdings and their own businesses endangered, they’ll put pressure to either block the nuclear program or to change the regime.”
Considering that Iran is probably only a few years away from the bomb this would have to be tried now. It is encouraging, though, that Obama is behind a version of this.
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