Blair described remaining calm during the cris and then said, “We did not negotiate, nor did we confront.” In other words, we did nothing.

This is exactly what the Mullas or Ahmadinajad or whoever is in charge there want the western world to do regarding all of the issues in the current standoff: Terrorism in Iraq, Hezballah, and especially the nuclear issue. The message is - sit back, do nothing and you will be rewarded. The way Britain handled the hostage crisis is exactly the way Iran wants the world to handle their uranium enrichment program.

Don’t confront, no need to negotiate, Iran is in control and will make everything alright in the end. And, you’re right, it does enforce his standing as “cock of the rock” amongst all the zealots in the middle east. I prefer to think of him as just the “cock” however.