The Pentagon is updating the US's policy of deterrence to take into account a nuclear-armed Iran, The Sunday Telegraph reported. Officials in both the US and Israel reportedly told the Telegraph that Iran has hidden and scattered its nuclear facilities more effectively than previous intelligence has indicated. Pentagon adviser Dan Goure told the paper that while "military strikes [against Iran's nuclear facilities] might set the program back a couple of yearsâ€¦ current thinking is that it is just not worth the risks." Meanwhile, the paper continued, some believe that Israel is preparing to counter nuclear aggression by Iran by fitting out a fleet of submarines with atomic weapons. The Telegraph report comes three days after another report was released, according to which, Prime Minister Ehud Olmert has instructed his cabinet ministers to draft proposals on how to cope with a nuclear Iran. The report was later denied by a senior Prime Minister's Office official, Israel Radio reported. The agency quoted a source close to Olmert as saying there were "long-term ramifications to be addressed, like how to maintain our deterrent and military response capabilities, or how to offset the attrition on Israeli society that would be generated by fear of Iranian nukes."