The issues around Iran and proposed (perhaps imminent) sanctions from the international community continue to simmer on their way to a boil. According to Reuters, President Mahmoud Ahmadinejad said any country that tried to impose new sanctions would “regret its actions.” Both Russia and the United States have expressed concern about Iran’s nuclear programs.

"Iran will retaliate ... of course, if somebody acts against Iran our response will definitely be firm enough...(to) make them regretful. Sanctions will not harm Iran," Ahmadinejad is quoted as telling a news conference.

Hillary Clinton is out working the international crowd, currently trying to get Saudi Arabia to help talk China into backing fresh sanctions that Clinton indicated should target Iran's Revolutionary Guards- there is also mounting concern that Iran is becoming more of a military dictatorship.

The U.S., Russia and France collaborated on a letter expressing concern around the nuclear activity in Iran, essentially saying that it is unjustified for Tehran to seek further uranium enrichment rather than create a nuclear fuel swap. This is a political perfect storm that combines Western-Middle East politics with nuclear issues with business (the business of selling nuclear energy).

While President Ahmadinejad said nuclear exchange talks were still open, his inflammatory rhetoric is not going to help matters any.

"The case is not yet closed...we have already announced that we are ready for a fuel exchange within a fair framework. We are still ready for an exchange, even with America," said Ahmadinejad.

Turkish Foreign Minister Ahmet Davutoglu is in Tehran right now working on the issue.

"We have passed our own original proposals. We have brought up some ideas to unlock the impasse," said Turkish Foreign Ministry spokesman Burak Ozugergin.

A possible deal-breaker for the West is that Ahmedinejad wants the exchange to take place within Iran.

Israeli Prime Minister Benjamin Netanyahu, no surprise, is calling for "paralyzing sanctions" on Iran during his trip to Moscow.

Iran has to realize that they are isolated here, and that any kind of aggressive talk is only going to make the situation tip against their wishes. They have to accept.

I will say that they have one thing right:

According to Reuters, “Ahmadinejad said Iran had been willing to send its uranium abroad rather than enrich it further at home, but that it had ‘found that there is no goodwill in this regard.’”

Yeah. Nobody is offering you nuclear power because we want to be nice. It’s to keep you from having any way or possible ability to build a bomb. No secrets there. We have no goodwill toward Iran right now. That’s not on the table until you accept the offer, President Ahmadinejad.

"They (the United States) imagine that they can prevent Iran's oil exports and it is just dreaming. They are not able to do that. The only opportunity they have is to use Iran's capabilities," said Ahmadinejad.

"There are several refineries under construction...and as soon as they become operational we can even export gasoline."

Perhaps true, maybe not. The fact is sanctions would hurt Iran, and Ahmadinejad better wise up to that fact sooner rather than later- for the energy good of his country and for the military good of the rest of the world.  

 Photo Credit: Daniella Zalcman (via Flickr under CCL)