https://www.foreignaffairs.com/israel/why-iran-and-israel-stepped-back-brink
The diplomatic surge succeeded in keeping the crisis contained. It also made clear that the United States’ highest priority is to prevent the war in Gaza from igniting a regional conflagration and dragging the United States into another costly war in the Middle East. A fact working in Washington’s favor is that neither Iran nor Israel is keen on direct conflict, their recent show of force notwithstanding. Iran understands that Israel is a nuclear state with superior conventional capabilities and that war with Israel would ultimately mean war with the United States. Israel, for its part, knows that a larger conflict with Iran would compel Hezbollah to fire many more missiles at Israeli cities and military facilities. Still, if the tenuous truce between Iran and Israel is to hold, Washington must remain deeply engaged. It must work closely with Israel to address the country’s security concerns, and it should build on the diplomatic progress it has made with Iran in recent weeks.
Iran stepped back because attacking Israel would make it impossible for Biden to give them nukes. Israel stepped back because attacking Iran would make it impossible for Biden to give them nukes and he'd punish them for that.
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