UPI: Middle East analysts will be burning the midnight oil for the next few days, trying to decide if the letter sent by Iran's President Mahmoud Ahmadinejad to President George W. Bush represents a bold step by the conservative president of the Islamic republic; if it should be interpreted as a sign of weakness; or if it has ulterior motives.
Daily Telegraph: In the confrontation with Iran over nuclear weapons, there is much talk of the dangers that the West would run in imposing sanctions on the regime, let alone attacking it militarily. The heirs of Ayatollah Khomeini have a long reach, as demonstrated in the assassination of political opponents exiled in Europe or the car-bombing of a Jewish cultural centre in Argentina.
Washington Times: The standoff over Iran's nuclear program has been a chief irritant driving oil prices to record highs this year. The tensions are likely to continue pressuring prices well into next year and could flare up at any time, analysts say.
New York Times: The United States and its European negotiating partners are preparing to repackage economic incentives aimed at inducing Iran to cooperate in eliminating its suspected nuclear weapons program, and to add some "new ideas" for Iran to consider, American and European officials said Tuesday.
Wall Street Journal: With Russia and China balking, the U.S. and its allies will slow their push for U.N. Security Council action against Iran and develop a new list of incentives and punishments intended to persuade Tehran to curtail its nuclear program.
Christian Science Monitor - The Monitor's View: Top diplomats of the world's major powers met in New York on Monday to see if they could agree on whether the UN Security Council should demand that Iran suspend its uranium enrichment and stop building a heavy-water nuclear reactor. They couldn't.
Reuters: Iranian President Mahmoud Ahmadinejad, on a visit to fellow Muslim nation Indonesia, said on Wednesday that Western countries' expressions of concern over its nuclear policies were a "big lie".
AP: Indonesia called on Iran to be more transparent in its uranium enrichment program, but defended the country's right to produce nuclear energy, ahead of a state visit by Iranian President Mahmoud Ahmadinejad.
Reuters: European officials on Tuesday worked on a package of carrots and sticks for Iran after major powers failed again to agree on a U.N. resolution aimed at curbing Tehran's nuclear ambitions, diplomats said.
Iran Focus: Baghdad, May 09 A staggeringly high proportion of foreign insurgents arrested in Iraq are of Iranian origin, according to an Iraqi daily close to Massoud Barzanis Kurdistan Democratic Party.