Is Saddam so Desperate that he Would Kiss Israels Butt?

This article from the Tehran Times says so. It says that, Israel could convince the United States not to attack, that Iraq would apologize to Israel, take in 2 million Palestinians, and thus get them out of Israel's hair, and give Israel 350,000 barrels of oil each day.
I sort of doubt this story myself. I can remember hearing similarly outlandish stories from Iranian students about the time that the Shah was overthrown. It would be the highest insult from Iran to suggest that Iraq was conspiring with Israel.