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"The year 2007 is going to be a critical year, as the international arena will do its utmost to narrow down the nuclear capabilities of Iran. It could be done by using more affirmative sanctions, or even a military campaign," Ganor said. "And the ramification of such an attempt, even if it's only sanctions, will cause a terrible deterioration of the situation on the northern border, where Iran will use its proxy Hizbullah to retaliate against Israel, and make clear that Israel has to pay for any activities against Iran," Ganor added.