OK, I've gotten another cup of coffee, and almost feel the strength to deconstruct this piece of lousy journalism.
1) This is the Jerusalem Post quoting Israel Army Radio, e.g. they didn't even report it themselves.
2) It's not only second hand in terms of one media outlet citing another; it's third hand in terms of sourcing, and all anonymous at that. The Jerusalem Post is citing Israel Army Radio which is quoting an unnamed Israeli official quoting an -- again unnamed -- "senior member of Bush's entourage" which includes a universe of people that could be say the spouse of a businessperson who was part of the delegation. Almost certainly not a government official and almost certainly not someone informed about policy deliberations. Something in the realm of idle gossip.
3) If all that didn't, this line should give you pause: "However, the official continued, 'the hesitancy of Defense Secretary Robert Gates and Secretary of State Condoleezza Rice' was preventing the administration from deciding to launch such an attack on the Islamic Republic, for the time being." In other words, while according to fourth hand anonymous sources Bush and Cheney believe force may be necessary, they are prevented from acting by the Secretaries of Defense and State. To begin with, Bush gets to override his cabinet heads when he wants to. Secondly, this is a line that essentially negates the first part of the story.