Benjamin Netanyahu is seething as Donald Trump edges closer to striking a peace deal with Iran, leaving the Israeli prime minister wishing Barack Obama were back in the White House, according to a new report.

Netanyahu privately views the looming US-Iran pact as an unmitigated catastrophe and lays the blame squarely at Trump's feet, a senior political source revealed to Al-Monitor.

'This time, the prime minister's hands are tied. He is completely paralyzed and knows that he will not be able to do anything, even if the agreement signed between the United States and Iran remains the disaster he now defines it as,' one of Netanyahu's close associates told the outlet. 

So deep is Netanyahu's despair that he now yearns for the days of Joe Biden and even Obama, who he famously clashed with, the insider said. The Israeli leader, however, is now forced to fall in line behind Trump. 

The still-to-be-finalized agreement has ignited speculation in Israel that Netanyahu may be forced to step aside to dodge an electoral wipeout and avoid a possible prison sentence that could result from a long-running corruption case. 

'A US-Iran agreement will affect Netanyahu's decision on whether to run in the upcoming elections or conclude that it is time to quit in exchange for a plea bargain,' the source close to Netanyahu told Al-Monitor.

Netanyahu's inner circle is also pinning blame on Trump for squandering what Israeli security chiefs saw as a genuine shot at toppling Tehran's leadership by arming Iran's Kurdish minority. 

The plan, however, was reportedly killed by Trump at the eleventh hour under pressure from Turkish President Recep Tayyip Erdogan.

At the start of the war, reports emerged suggesting that Kurdish fighters from Iraq would cross the border into Iran under Israeli and US air cover. 

Trump had privately backed the idea in the early stages of the war but ultimately pulled out to avoid escalating the conflict beyond airstrikes, according to the report. 

'The plan to overthrow the Iranian regime with Kurdish cooperation was comprehensive and detailed,' a senior intelligence source told Al-Monitor.

'We invested enormous resources and energy into it. It was not a gimmick, and it was not superficial. The Americans know this very well because they were thoroughly briefed.'