One step closer to a new war?

Mr. Ahmadinejad has announced that Iran will now begin to produce more highly enriched uranium - not the 90% needed for a weapon, but up to 20%, needed for Iran's medical reactor.  As the NYT's report notes, it may be gamesmanship to get a better enrichment deal from the West, but it's another "in your face" to the US and its European allies.  Sec Def Gates has used the announcement to issue yet another call for more sanctions.  And of course, the announcement will surely set off more alarm bells within the Netanyahu government.  But the Iranian government also says "Iran's stance on the nuclear fuel swap has not changed. Iran is still ready to do such an exchange and if the other side is ready we can negotiate over the details of such a deal."

Games of "chicken" are seldom fun for the onlookers, and tend to end badly.