There won't be a World War III over this, but a regional war is certainly possible. The Iranians have creativity on their side, despite facing crippling sanctions, they continue to stay afloat and remain a threat militarily. If it weren't for the West, many Arab countries might have indirectly fallen under Iranian influence. One thing almost everyone respects about Iran is that they are not complete subservient slaves like the Arab regimes, which cannot survive without the West and rely heavily on imports.
It's for this reason they should view Iran has a strategic military ally, this doesn't mean you are inviting Shi'ism to your countries. If they don't those Arab states that rely on and ally with the west are in for a rude awakening because when Isreal continues their greater Isreal project, United State and others wont protect anymore and will kick Saudi for example in favor Isreal. It will be a prime oppurtune