No need to be pessimistic or worry about it too much.
This incident will soon be resolved with an exchange of the Iranians diplomats snatched by the Iraqis.
I think the Iranians want their people back just as the British want theirs back. This is a case for diplomacy and Blair is using the correct approach to resolve it.
First you call the british navy personnel who were captured "intellegence agents" and now you call the Iranians caught in Iraq "diplomats". Who are are?
you think Iran is in this JUST to get their agents back?? This is a huge power play with a lot more at stake than a few abducted soldiers. There are U.S. troops and military assets in Iraq, Afganistan, Arabian Sea, etc. practically surrounding Iran. Their nuke program is under intense global scrutiny. They just got hit with more U.N. sanctions. Significant domestic dissent.
These abducted soldiers are just pawns in a bigger higher stakes game. And while you may be right that a simple exchange of prisoners may be how this is resolved, it also (at least from the Iranian perspective) serves to take the focus off some of the other issues they are dealing with
Negotiating with terrorists should never be an option.
You are seriously deluded. The so called snatch of Iranian diplomats is because the Iranians have been meddling in and provoking the war in Iraq and funding both the insurgents and the radical shia's (no capital not by accident). They are all clones of a guttural religion.