Yes, he's scared of Iran. But here's part of the interview that Jeffrey Goldberg did not highlight:
YOUSEF AL OTAIBA: For [Obama] to really make progress on the Iran issue and to deal with extremism and to deal with terrorism in the region, to deal with radicalized home-grown terrorism in the U.S., you need to address the [Israel-Palestine] peace process. That is the one core issue everyone tends to blame, and that's what the people hang all their problems on. Well, the Palestinians are, you know, they are they don't have a country, they are abused, they are oppressed, and the U.S. always sides with Israel. So the sooner U.S. appears to be objective and impartial and create a Palestinian state, we take that argument away from everyone, and that is in everyone's best interest.
JEFFREY GOLDBERG: Why would that stop Iran from developing a nuclear weapon?
OTAIBA: It won't stop. It will get you all the Arab countries more aligned on containing Iran because now they use Palestine as an excuse, and the Palestine issue is a deep political problem. And I'm not saying it's only the U.S.' fault, I'm saying it is as much Israel and Palestine's fault for not making any progress on it themselves. But lack of their kind of commitment, the U.S. needs to step in and say, you need to do this. And you need to do this for your sake, for our sake, and for the region's sake.