"Sanctions against the Islamic republic have been ineffective. The Europeans should be careful about what they say and avoid using threats."
So can it be described as a diplomatic endgame?
"I wouldn't go so far as to call it that," an EU member-state's ambassador here said. "Military action is not on the cards at all, and I emphasize that strongly."
The likely consequence, EU diplomats say, is that their bid to engage the Islamic republic is put on hold, or in other words less of the carrot and more of the stick.
"Scheduling problems" have already been reported for their latest installment of talks on heightened trade.
"Companies from individual member states are doing business and will continue to do business in Iran," another senior EU diplomat said. "But there won't be any trade agreement. In fact, we are going to have to sit down again and reexamine our entire strategy."



