New Scientist: Stuxnet: the online front line: Stuxnet, the computer worm running rampant in Iran's nuclear facilities ..... a few lines of malicious computer code can trip electricity grids, burn out power-station generators, pollute water supplies and sabotage gas pipelines. ....... Where regular worms merely infect computer systems, stuxnet can reach out into the physical world. It uses vulnerabilities in Microsoft Windows to give an attacker remote control of the specialised factory-floor computers used to control industrial processes. ..... The worm can allow attackers to run motors so fast they burn out, to turn off alarms and safety cut-offs, open effluent valves and activate pumps - in other words, carry out industrial sabotage and skulduggery on a massive scale.Unless we have some high tech mullahs in Iran, my guess is they are one confounded crowd. As to the origins of stuxnet, your guess is as good as mine. It is possible this has been the work of the Pentagon, like the Iranian regime has been claiming, possibly even the work of Israel, but I doubt that. Biblical references in malicious code do not prove the worm is Israel's work. It is very possible some teenager cowboys, either in Israel or America, and as much likely elsewhere, took it upto themselves to tickle the Iranian regime a little.
Whoever might be behind this, and we might not even know, very likely, this stunt has rattled the mullahs like threats of economic sanctions have not so far.
When they start arresting "spies" is when you know they got it all wrong. That is a symptom of being confounded. Obviously you do not have to be inside of Iran to pull this stunt. That is the whole point of cyber attacks.
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