Former U.N. Ambassador John Bolton said this morning he believes the nuclear arms race in the Middle East is already underway. 

Bolton said countries like Saudi Arabia, Egypt and Turkey, are accelerating their own nuclear development amid the negotiations between Tehran and the West. 

"They see that if the United States isn't going to stop Iran, they have to look to their own defenses and get a nuclear capability. ... There's no doubt. Nobody in the Middle East wants Iran to have nuclear weapons," said Bolton, adding that these countries don't want to wait for the day when it's clear that Iran is a nuclear power.

Bolton also discussed how a defeat for Israeli Prime Minister Benjamin Netanyahu will impact the region. 

He said if Netanyahu's Likud party loses at the polls, it will be because of dissatisfaction about the country's economy. 

If he is defeated, Bolton said the nuclear deal between the West and Iran will go through and there will be no military strike on Iran by Israel. 

If Netanyahu remains in power, Bolton said he still believes it's "inevitable" that Iran will develop a nuclear weapon, especially if the agreement supported by President Obama is signed. 

He pointed out that even though the election results will be known today, it could be "quite some time" before we know who will be prime minister in the new government.

Bolton also reacted to a report that U.S. taxpayer money went from the State Department to a nonprofit that has supported the campaign to oust Netanyahu. 

"I think they've done everything they can to shape a Netanyahu defeat," he said, calling for Congress to investigate this issue.

Watch his full analysis above, plus stay tuned to Fox News throughout the day for the latest updates on the Israeli election.