Scott Wickstein at Samizdata blogs on European ineptitude in dealing with Iran:

Of course, the real negotiating tool is the United States Army, Navy, and Air Force. With American troops still in Iraq, Iran knows that it has to tread warily, but the cunning men in Tehran may well be counting that the US will not feel able to take decisive action before the 2008 Presidential elections change the political landscape in a possibly decisive way.

I personally am very pessimistic about these developments.

Of course, there’s always Israel to consider; they won’t feel restrained by the realities of American politics.

Update: Europe is giving up on diplomacy:

BERLIN (AP) – The British, French and German foreign ministers said Thursday that negotiations with Iran over its nuclear program had reached a “dead end” and the Islamic republic should be referred to the U.N. Security Council.

The ministers did not specify what action should be taken by the Security Council, which could impose sanctions. They called for a special session of the International Atomic Energy Agency to decide the referral.