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Sure, they can pass thru the canal ... and as soon as they enter the territorial waters of Israel without permission, Israel can turn them into fishing reefs.

And even if they don't enter Israeli territorial waters, the Israeli Navy can make life very, very unpleasant for them.

At the very least I'd expect to see many pictures of the Iranian ships as seen through the attack periscopes of Israel's Dolphin-class subs hit the net pretty quickly.

The Iranians are pretty stupid to be doing this. All it'll do is show the rest of the world (and their own population - which WILL be able to access the pics) how weak they are.

What happens if the Iranians scuttle their own ship inside the canal? They can blame an Israeli submarine. Then, you have an international act of war by the Jews, and a vital international seaway encumbered to all, at least for a time. Big international outrage at Israel's "unprovoked attack".

I think the payoff for Iran might be enough to warrant scuttling a ship.