As if President Barack Obama didn't have his hands full at home with his party's loss of Ted Kennedy's seat in Massachusetts, the collapse of health care reform and a disorganized war against the banks, he now faces a major foreign policy setback. Since the 2008 presidential campaign, Obama has promised to curtail Iran's nuclear program by simultaneously offering talks and threatening sanctions. After a year of trying, both approaches appear on the verge of failure.

The President has given Iran two deadlines to demonstrate good faith. Last spring, his Administration told reporters that if Iran didn't show willingness to engage in talks by September, sanctions would follow. Then, in September, when Iran hinted that it might possibly talk, Obama delivered another deadline, this time the end of 2009.(See pictures of people around the world protesting Iran's election.)

Iran's response to these deadlines has been repeated delays and obfuscation. First, in the spring it delivered a lengthy manifesto about global peace irrelevant to the issues at hand. The summer months were taken up with Iran's election turmoil, but following talks with the U.S. and its international partners in the fall, Iran hinted that it might be willing to accept a deal under which it would export most of its enriched-uranium stockpile to be converted into reactor fuel — and then quickly backpedaled as the proposed deal came under a hail of criticism from across Iran's political spectrum. In recent weeks, Iran has made a counteroffer to export its uranium in small parcels over a longer time period that State Department spokesman P.J. Crowley described as "clearly an inadequate response."(Watch a video interview with Mahmoud Ahmadinejad on the nuclear issue.)

The idea behind Obama's engagement effort, though, was that if Iran kept stalling, countries previously opposed to sanctions, such as Russia, China and Germany, could be persuaded to support new punitive measures aimed at forcing Iran to cooperate. "We actually believe that by following the diplomatic path we are on, we gain credibility and influence with a number of nations who would have to participate in order to make the sanctions regime as tight and as crippling as we would want it to be," Secretary of State Hillary Clinton told the House Foreign Affairs Committee in last April.(See pictures of terrorism in Tehran.)

So, how's that working? Not very well, by all indications

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