General Michael HaydenBoth sides believe that getting the other to make those concessions over the nuclear issue would be a major psychological blow --- perhaps even a defeat --- in the struggle for regional power. Both believe that such concessions --- Washington admitting Tehran's "right to enrich" or the polar opposite, Tehran giving up that --- would signal fundamental weakness in its rival.
At the level of this week's talks, those hopes and fears are being put diplomatically. Beyond the talks, in the chattering cauldron of Washington, some are blunter.
Hojatoleslam Rasoul Montajabnia, the deputy of the Etemad-e Melli Party of detained opposition leader Mehdi Karroubi, has suggested that --- to see more participation in the election --- former Presidents Mohammad Khatami and Hashemi Rafsanjani must be involved without necessarily becoming candidates.
Montajabnia said, "With their active presence in the election environment, the intellectuals and the critics of the country’s officials and rulers will become interested in participating in the election."
2000 GMT:Threat of the Day. Alaeddin Boroujerdi, the head of Parliament's National Security Commission, has repeated the Supreme Leader's warning that Israeli cities will be destroyed if West Jerusalem attacks Iran: “Although the Zionist lobbies are exerting great influence on the US administration, the (Israeli) regime will have no power of its own in the absence of the US support."
Ayatollah Khamenei used a New Year's address on Thursday to warn that Haifa and Tel Aviv would be "annihilated" following any Israeli military action against the Islamic Republic.
1950 GMT:The Defeat of Ahmadinejad. After today's showdown in Parliament, Speaker Ali Larijani and President Ahmadinejad have each cancelled press conferences called for tonight.
1850 GMT:The Defeat of Ahmadinejad. Some Western media have noticed today's dramatic events in Parliament, but they are struggling to get a handle on what happened.
After giving a full description of the President's attempt to tag Larijani with corruption, via a claimed audio tape of the Speaker's brother, the article finally approaches the significant development:
"Our problem is that our president does not observe the basics of proper behavior," Larijani said. "Why did you discuss this issue here?"
Larijani continued: "Actually it's a good thing ... that you played this tape today, so that the people better understand your character."
The Washington Post focuses on the Minister of Labor's impeachment, giving only a brief description of the Ahmadinejad-Larijani exchange --- and missing the significance of it --- at the end of the article.
2117 GMT: Economy Watch. Radio Zamaneh summarises the gloomy report of Parliament's Research Center, surveying 98 economic organizations over the past year, that production has fallen 40% and employment is down 36%. The downturn has been fed by price rises of 87.9% for produced goods and 112.1% for primary materials.
The Center adds that in the past year, only 50 production facilities have been established while 566 have shut down.
Meanwhile, in an example of the problems with production, 300 workers at the Fajr Petrochemical factory in Mahshahr have gone on strike protesting the lack of job security.
1950 GMT: Nuclear Watch. Following a meeting of the 5+1 Powers (US, Britain, France, Germany, China, and Russia) in Brussels, a spokesman has said that the group wants a new round of negotiations with Tehran as soon as possible: "The idea of course is that we want Iran to really engage in the proposals we have made and guarantee and persuade the international community that the Iranian nuclear programme is purely for peaceful means."
Earlier this month many of the shops in the Tehran Bazaar closed amid a protest over the currency crisis.
2031 GMT: Ahmadinejad Watch. At least one notable MP is none too happy about the prospective interrogation of President Ahmadinejad --- Gholam Ali Haddad Adel, the head of the Principlist faction and a relative of the Supreme Leader, has said, “I don’t think questioning the President in the present circumstances is expedient....Unity and amity for solving the economic problems must be the priority of the Majlis and Government."
Some of those arrested in East Azerbaijan Province for helping earthquake victims, in a photo before their detentions: Vahed Kholoosi (far right), Hossein Ronaghi Maleki (front row, white hat), Navid Khanjani (front row, black hat), Misagh Afshar (front row, sitting on the right of Hossein Ronaghi), Artemis Varzandeh (front row, second from left)
2343 GMT: The Earthquakes. Back to our opening story --- activists report that all eight women and four men arrested while helping victims of the East Azerbaijan earthquake have been released on bail.
At least 23 other men remain behind bars.
A photograph of one of the detainees, blogger Hossein Ronaghi Maleki, with a young girl while helping with the recovery:
January 2012: From left to right --- Iran's Supreme Leader, Syria's Assad, Yemen's Saleh, Libya's Qaddafi, Egypt's Mubarak, and Tunisia's Ben Ali
2048 GMT: Nuclear Watch. Laura Ashton reports that the lead nuclear negotiators for the 5+1 Powers (US, UK, France, Germany, China, and Russia) and Russia spoke by phone today.
The European Union's Catherine Ashton, speaking to Saeed Jalili, "impressed the need for Iran now to address issues". The two, speaking for the first time since high-level talks in Moscow in mid-June, agreed to reflect and speak again at the end of month.
2055 GMT: Foreign Affairs (Egyptian Front). Back to today's running story of the Revolutionary Guards' PR offensive to prove Iran's alliance with Egyptian President-elect Mohamed Morsi (see 1025 GMT).
Rivals within the establishment, namely State news agency IRNA, may have denounced the interview of Morsi by Fars, linked to the Guards, as a fake; however, that has not stopped the website. Tonight, its English-language edition features no less than five stories based on the alleged discussion with Morsi.