Much of looking at Iran and trying to decipher events there depends on the ability to see and appreciate nuances.
It may not mean much to some, however in the ecosystem of Iranian politics, the recent decision to cancel an anti-Israeli conference in Tehran can be considered as a small yet positive step taken by the Rouhani administration.
It has to be noted that this probably was not an easy decision, and that Rouhani will take much flack for it from the hardliners who are waiting to politically ambush him at every corner.
Why did he do it?
When it comes to Iran’s relations with the West (especially) previous venomous rhetoric heard from Ahmadinejad regarding Israel was fast becoming a liability.
Rouhani most probably took this step in order to strengthen Iran’s hand in the upcoming nuclear negotiations with the P5+1.
It is also his way of trying to improve relations with the US government, within the severe limitations which Rouhani faces at home. Its not easy having a holocaust denying boss. Rouhani is severely limited in what he can do.
This is a small step. There is still much anti Israel rhetoric and statements coming from the other parts of the regime. However its importance must not be overlooked.