MEANWHILE, IN IRAN....TICK, TICK, TICK

Iran Says It Will Ignore UN Deadline on Uranium Program - Michael Slackman
Ali Larijani, Iran's security chief and top nuclear negotiator, said Sunday that Iran would defy the UN Security Council by refusing to halt enrichment of uranium by the end of the month. (New York Times)

See also Hizballah Attacks Seen as Iran Diversion - Rowan Scarborough
Hizballah's July 12 attack on Israel is seen by some Bush administration officials as a bid to break the West's unified focus on forcing Iran to stop enriching uranium for use in nuclear weapons. (Washington Times)

See also Defiant Iran Threatens to Use "Oil Weapon" Against Sanctions - Richard Beeston
Experts are divided over whether Iran would carry out its threat to withhold oil sales as a political weapon. Oil accounts for 80% of Iran's export earnings and its economy would collapse if crude exports were halted indefinitely. (Times-UK)