For what it's worth, this is one of them "dern foreign" newspapers reporting on the "not softening" of the policy to remove the deterrant of military action from the diplomatic equation.
For the past two years, the White House has stated clearly that "all options" are on the table with regard to Iran. If this doesn't undercut the White House, I don't know what does. Iran "living up to their obligations" means letting the U.N. back in to do their inspections. Whoop dee doo. That carries all the weight of a feather in a hurricane.
I would hasten to point out that Blair didn't say that military options were off the table. He said isolation was the first consequence.
Regards, Ivan