So the intel community says that Iran is no longer a nuclear threat. Not that this news makes much of a difference to President George W. Bush. He wants to see the international sanctions not only maintained, but increased. It matters little to the president that his 16 intelligence agencies just declared Iran a non-nuclear threat. And that since 2003.

As can be expected the recently released National Intelligence Estimate report, or NIE, by the combined U.S. intelligence services assessing that Iran, despite all the recent rhetoric, is not on its way to build a nuclear bomb, took everyone by surprise, including the Iranians. Except for President Bush, whom it seems had prior knowledge.

This latest political bomb sent shock waves through Washington. The new NIE revelation comes after four years during which time the Bush administration was piecing together its case against the Islamic republic, with the president declaring repeated times that "all options remained on the table." That's Washington talk meaning military action.

During that same time Vice President Dick Cheney was the principal advocate of firm action, beating the drums of war louder than anyone else inside the Beltway. The administration claimed to have all the "proof" needed to justify its policy.

Then on Monday came the unexpected reversal. Why? And why now? It matters little; the Islamic republic is not yet out of the nuclear woods. Regardless of what his combined intelligence chiefs tell him, Bush insists that Iran still represents a clear and present danger. They may not have a nuclear weapon – yet – but they certainly have the knowledge to build one.

Ironically, the rhetoric is now on the other foot, so to speak. Iran's maverick president, Mahmoud Ahmadinejad, did not waste time declaring the NIE findings an Iranian "victory." Addressing thousands of supporters at a rally in Ilham province, Ahmadinejad said the U.S. National Intelligence Estimate report was an attempt to "extract America from its impasse, but it is also a declaration of the Iranian people's victory against the great powers."

"You are all victorious in all areas and especially in nuclear," Ahmadinejad said added in his speech, broadcast live on state television: "With the help of God, our people have resisted, are resisting and will resist until the end."

The Iranian president's statement leaves us somewhat perplexed: If this is a great victory, "especially in nuclear," is that not an indication that Iran is still committed to pursue its nuclear ambitions?

Indeed, there appears to be total confusion within the administration. Then again, maybe not.