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The civil nuclear agreement was signed in January between the United Arab Emirates and the Bush administration, but after the new administration took office, the deal had to be recertified

"It's being temporarily held up because of that tape," one senior official said.

The State Department had little to say publicly on the torture tape incident, but its 2008 human rights report about the United Arab Emirates refers to "reports that a royal family member tortured a foreign national who had allegedly overcharged him in a grain deal."

U.S. Rep. James McGovern -- the Massachusetts Democrat who co-chairs the congressional Human Rights Commission

McGovern asked Clinton to "place a temporary hold on further U.S. expenditures of funds, training, sales or transfers of equipment or technology, including nuclear until a full review of this matter and its policy implications can be completed." He also asked that the United States deny any visa for travel to the United States by Sheikh Issa or his immediate family, including his 18 brothers, several of whom are ruling members of the UAE government.

UAE Crown Prince Mohammed bin Zayed Al Nahyan, a half-brother of Sheikh Issa, is expected to visit Washington sometime next month.

Under the "1-2-3 deal," similar to one the United States signed last year with India, Washington would share nuclear technology, expertise and fuel. In exchange, the UAE commits to abide by the Nuclear Non-proliferation Treaty and the International Atomic Energy Agency safeguards. The small oil-rich Gulf nation promises not to enrich uranium or to reprocess spent nuclear fuel to extract plutonium, which can be used to make nuclear bombs.

The deal is part of a major UAE investment in nuclear, and it has already signed deals to build several nuclear power plants. The United States already has similar nuclear cooperation agreements with Egypt and Morocco, and U.S. officials said Washington is working on similar pacts with Saudi Arabia, Bahrain and Jordan.

When the Bush administration signed the deal in January, it stressed the UAE's role in global nonproliferation initiatives, including a donation of $10 million to establish an International Atomic Energy Agency international fuel bank.

Congressional critics fear the deal could spark an arms race and proliferation in the region, and the UAE's ties to Iran also have caused concern.

Iran is among the UAE's largest trading partners. In the past, the port city of Dubai, one of the UAE's seven emirates, has been used as a transit point for sensitive technology bound for Iran.

Dubai was also one of the major hubs for the nuclear trafficking network run by Pakistani nuclear scientist Abdul Qadeer Khan, who admitted to spreading nuclear technology to Iran, North Korea and Libya up until the year 2000.

Such ties contributed to stiff opposition in Congress to the failed deal for Dubai Ports World to manage U.S. ports.

Officials said they expect the deal to be sent up to the Hill for ratification within the next few weeks, given that there has been little blowback from the publication of the tape, except for McGovern's letter to Clinton. "It will be sent very soon," one official said.

UAE Ambassador to the U.S. Yousef Al Otaiba told CNN his government always expected the deal to be sent to the Senate in early May, regardless of the controversy surrounding the tape. "As far as we are concerned, the deal is on track and this has not affected the timing," he said.

The fresh revelations about Issa's actions will add further doubt to a pending nuclear energy deal between the UAE and the US. The deal, signed in the final days of George W Bush, is seen as vital for the UAE. It will see the US share nuclear energy expertise, fuel and technology in return for a promise to abide by non-proliferation agreements. But the deal needs to be recertified by the Obama administration and there is growing outrage in America over the tapes. Congressman James McGovern, a senior Democrat, has demanded that Hillary Clinton, the US secretary of state, investigate the matter and find out why US officials initially appeared to play down its significance.

The tape emerged from a court case brought in America by Nabulsi. The American citizen is a former business partner of Sheikh Issa, and claims he, too, was tortured in the UAE after the pair fell out. Nabulsi said the first tape was shot by his brother on the orders of Sheikh Issa, who liked to view them later for his own pleasure.

France and Pakistan agreed to cooperate in the field of civilian nuclear energy during Mr Zardari's visit to Paris earlier this month, but details of the plan have yet to be agreed.

U.S. and European diplomats believe that hard-line elements inside Iran's political establishment used the Saberi case in a bid to sabotage any rapprochement with Washington.

The target also comes about ten weeks after the Iranian presidential election June 12, giving the U.S. some time to gauge the new Tehran administration. Current Iranian President Mahmoud Ahmadinejad, who is running for re-election, has at times publicly welcomed Mr. Obama's call for negotiations on the nuclear question. But Tehran continues to expand the number of centrifuges enriching uranium at its Natanz facility.

The U.S. Congress is debating legislation that would require the White House to sanction companies exporting refined petroleum products to Iran. Tehran imports roughly 40% of its gasoline despite having some of the largest energy supplies in the world.

All Iran's presidential candidates have said they will not abandon enriching uranium, but Tehran political insiders with knowledge of the talks say Iran could agree to a short-term "freeze for freeze" formula. Iran would then offer that Western powers can freely monitor Iran's program to ensure it is not turning military -- in return for sharing technology and expertise.

"The Americans will have to accept this offer, they have no choice," said Sadegh Kharazi, a former deputy foreign minister who remains involved in Iran's foreign policy. "Iran will not back down. From now on, let's all talk about how to form partnerships so it benefits both parties."

The benchmarks the U.S. and its allies are establishing also include signs Tehran will be willing to rein in its support for militant groups in the region.

Israel and key Arab allies have voiced concerns about the usefulness of diplomacy with Iran. The U.S. point man on Iran policy, Dennis Ross, was greeted with skepticism from Arab allies during a tour this month through Egypt and the Persian Gulf countries, said U.S. officials. Saudi Arabia and the United Arab Emirates., in particular, have expressed alarm over Iran's nuclear activities and its moves to support militant groups operating in Lebanon, Iraq and the Palestinian territories.

Israel believes Tehran could be far enough advanced in its nuclear work by early next year to make protracted negotiations moot. Last week, Brig Gen. Michael Herzog, chief of staff to Israel's defense minister, publicly called at a conference in Washington for the Obama administration to set clear timetables and benchmarks for its Iran diplomacy. He reiterated statements by new Israeli Prime Minister Benjamin Netanyahu's government that Jerusalem might take military action against Iran to end its nuclear threat. "When we say a nuclear Iran is unacceptable, we mean it," Mr. Herzog said. "When we say all options are on the table, we mean it."

In its limited, theocratic, way Iran is still more democratic than any Arab country except Lebanon and Kuwait. In Egypt, with all its weight and influence, protests over recent parliamentary and presidential elections were quickly silenced by the security forces, and attracted little western attention.

Equally predictably, from the other side of the ideological divide, came barely concealed glee that Iran's policies and alliances were coming under fire at home: "Iranians are now speaking out boldly against the squandering of public money on Hezbollah and Hamas … especially as Hamas only spends their money on fighting [rival Palestinian group] Fatah," commented Abdul Rahman Al-Rashed, of the Saudi-owned Al-Arabiya TV.

Unequivocal support for the Iranian regime came only from Syria – where President Bashar al-Assad won 97.6% in an uncontested referendum two years ago – and from Lebanon's Hezbollah, whose secretary-general, Hassan Nasrallah, saluted Ahmadinejad's victory as "a great hope to all the mujahideen and resistance movements who are fighting against the forces of oppression and occupation".

it is hard to disagree with the ever-perceptive Rami Khouri: "Arabs will not feel comfortable seeing the Iranian people twice in 30 years fearlessly challenging their own autocratic regimes, while the people of the Arab world meekly acquiesce in equally non-democratic and top-heavy political systems, that treat their own people as unthinking fools who can be perpetually abused with sham elections and other forms of abuse of power."