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By Jeffrey Heller JERUSALEM (Reuters) - Israeli Prime Minister Benjamin Netanyahu denounced a nuclear deal with Iran as a historic mistake on Sunday that leaves the production of atomic weapons within Tehran's reach and said Israel would not be bound by it. Having lost its battle against easing sanctions, Israel appeared to be charting a new strategy: intense scrutiny by its intelligence services of Iran's compliance with the interim agreement and lobbying for stronger terms in a final accord that world powers and the Islamic Republic are still pursuing. The terms of the deal and re-engagement of the West with Iran, after a protracted, volatile standoff, are a setback for Netanyahu, who had demanded Iran be stripped of its nuclear enrichment capabilities altogether. His military options in confronting Tehran now seem more limited and likely to risk Israel's isolation.
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