Britain Considering Iranian Demands

to kiss Iran's ass in Macy's window...

Well, almost. The Iranian "demands" have not been disclosed but the Iranians did deliver a formal letter to the British Embassy and the Brits: "are giving the message serious consideration and will soon respond formally to the Iranian government."

In keeping with the spirit of friendship and comity an Iranian official threatens legal action:
If Britain continued its current approach, "this case may face a legal path," Ali Larijani, the main negotiator in Iran's foreign dealings, said on state radio. "British leaders have miscalculated this issue."

And in a classic pot calling the kettle black moment:
Iranian state television reported what was believed to be Ahmadinejad's first comment on the standoff, saying he accused Britain of using propaganda rather than trying to solve the matter quietly through diplomatic channels.