TIME.com Print Page: World -- Any Chance for Peacemaking? What the Players Want: "Iran's growing reach may also raise the incentives for Washington to seek a 'grand bargain' with Tehran that would stabilize relations based on addressing Iran's demand for a normalization of its diplomatic status and security guarantees if it satisfactorily addresses Western concerns over its nuclear program and support for the likes of Hizballah and Hamas. (In a spurned Iranian overture to Washington in 2003 revealed by former National Security Council Middle East director Flynt Leverett and also by Colin Powell's former chief of staff Lawrence Wilkerson,� Iran reportedly offered to discuss ways in which Hizballah could be converted into a purely political organization.) "
Daily Kos provides some detail, as does TWN, and Gareth Porter writing in the Asia Times.