From the NY Daily News:
"BAGHDAD - The alleged abduction of an Iranian diplomat is threatening to escalate the tense standoff between Iran and the United States - and could swell into a major diplomatic crisis for Iraq's fragile, Shiite-dominated government. Iran has blamed the U.S. for the kidnapping - or possibly arrest - on Sunday in Baghdad of Jalal Sharafi, a second secretary at the Iranian Embassy.
Tehran said it holds the Americans responsible for his safety.
U.S. authorities deny any role in the disappearance."
But as I reported here, the US new policy towards Iran in Iraq has been:
"The Bush administration has authorized the U.S. military to kill or capture Iranian operatives inside Iraq as part of an aggressive new strategy to weaken Tehran's influence across the Middle East and compel it to give up its nuclear program, according to government and counterterrorism officials with direct knowledge of the effort."
Things are heating up...and not in a good way.