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Iran's Revolutionary Guards stand to be the biggest losers if the S300 system doesn't come through, since there will be little they can do but watch the bombs fall if Western powers attack. Though Russia delivered a smaller Tor-M1 missile defense system to the Iranians last year, it's a localized weapon. The S300 system, according to Jane's Defence Weekly, is "one of the world's most effective all-altitude regional air defense systems, comparable in performance to the U.S. MIM-104 Patriot system." The latest version of the S300PMU2 Favorit has a range of up to 195 kilometers and can intercept aircraft and ballistic missiles at altitudes from 10 meters to 27 kilometers. Though it's hardly clear the S300 will pose a problem for the Israeli or U.S. air forces. The Israelis have trained in avoidance tactics on an S300 system bought by Greece and deployed on the island of Crete; the U.S. Air Force has its own S300 system, which is now deployed for training purposes in the United States. According to one senior Air Combat Command source in Washington, the U.S. Air Force has the S300 "covered."

Regardless of the system's effectiveness, delivery of the S300 will be a key bellwether of Russian relations with the West. Moscow has much less influence over Tehran than it likes to pretend when bargaining with the U.S., and the S300 is one of its few remaining chips.

For years, Russia used construction of the Bushehr reactor by the Russian nuclear company Atomenergoprom as a key element of leverage, shutting down work on the plant for long periods. But now that Atomenergoprom has completed construction and is training the Iranian staff to run it, that leverage has gone. Though Russian staff will remain on-site at Bushehr, the Iranians can now run it on their own.

Russians may have less pull with Teheran than it claims, but it still sees Iran-U.S. enmity as a strategic goal, both because it increases their own diplomatic leverage and because it keeps oil prices high. Furthermore, Russia has been trying to make itself a rallying point for anti-U.S. regimes from Venezuela to Syria and Iran in an effort to restore its status as a world strategic player—a retread of the Cold War model of forging alliances with any Third World dictator who would take Russian money. So while Russia doesn't want Iran to get nukes and historically fears Iranian influence in Central Asia, Moscow has little interest in helping a rapprochement between Iran and the West. Meanwhile, the Kremlin is, cannily or cynically, depending on one's point of view, keeping the S300s on the table, neither committing to scrapping the deal nor delivering the equipment—and reserving the right to continue to tack between Jerusalem and Tehran as self-interest dictates.

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.

More significantly from a European perspective, the US agreed to significantly strengthen international oversight of financial markets, with particular attention paid to tax havens, hedge funds and ratings agencies.

It was a move that both Merkel and French President Nicolas Sarkozy insisted upon -- and one which will go a long way toward removing whispers of friction between Obama and Merkel.

"In America, there's a failure to appreciate Europe's leading role in the world." He went on to say that "there have been times where America has shown arrogance and been dismissive, even derisive."

"In Europe, there is an anti-Americanism that is at once casual, but can also be insidious. Instead of recognizing the good that America so often does in the world, there have been times where Europeans chose to blame America for much of what's bad…. On both sides of the Atlantic, these attitudes have become all too common. They are not wise."

At the Afghanistan Conference in The Hague earlier this week, Obama was careful not to make any concrete demands for more troops from his European NATO allies. But on Thursday, he seemed willing to tighten the screws slightly. In addition to warning that al-Qaida still posed a threat, he also said, referring to Afghanistan, that "Europe should not simply expect the United States to shoulder the burden alone. This is a joint problem that requires a joint solution."

The response from Sarkozy, who was standing right next to Obama, was swift. "There will be no French military enforcements," the French president said. "We are ready to do more in the field of policing, of gendarmes, in the field of economic aid, to train Afghans."

Other NATO countries on Friday, though, said that they would be willing to send more troops. SPIEGEL ONLINE learned from diplomats attending the NATO summit that British Prime Minister Gordon Brown intends to send several hundred more troops to Afghanistan. Both Belgium and Spain are likewise promising more soldiers, though Spain is reportedly planning to send just 12 additional troops.