NEW DELHI -- With Iran rebuffing the United Nations Security Council, yet another global hot spot is emerging in the vast but volatile region between India and Israel. This arc of volatility between the only two democracies in the region has been made worse by the developments in Iraq, Lebanon, Gaza, Syria, Afghanistan and Pakistan.

Now U.S. President George W. Bush is itching for a showdown over Tehran's defiant refusal to bow to the Security Council demand that it immediately suspend uranium enrichment. Eager to divert attention from his failures in Iraq and Afghanistan, Bush has pursued an approach on Iran in which carrots have been dangled merely to legitimize his first choice to use sticks. If Bush were to use the sticks against Iran -- either by imposing new sanctions or carrying out punishing airstrikes -- a bad situation would become worse in an arc already bristling with failed or failing states.

In its long-delayed response to the package of incentives offered by the five permanent Security Council members and Germany, Tehran has refused to suspend enrichment as demanded by the recent Security Council Resolution 1696. Instead it has shrewdly proposed immediate talks on finding a compromise settlement, tantalizingly leaving open the possibility that it might suspend enrichment as part of a negotiated bargain. Not surprisingly, this offer has been rejected by the Bush team.