And now it has to deal with an impasse over the evidence from America that Iran dismisses as a fabrication.

ECONOMIST: Nuclear proliferation

Until the impasse over the nuclear deal, the main tension always was between the economic liberalism of several leading Congress figures notably the prime minister, Manmohan Singh--and the leftist populism of many government supporters.

ECONOMIST: A nuclear deal with America provokes protests

Against that backdrop, White House officials and some Republicans are arguing that the best way out of the impasse is to resume the search for a comprehensive deficit-cutting deal that gets to the core of the long-term problem through a rewrite of tax policy and a revamp of entitlement programs such as Social Security and Medicare.

WSJ: Sequester Cuts Roll In as Time Runs Out

Still, while the U.N. talks are at an impasse, some analysts say there is still hope for a last-minute deal.

CNN: ASIANOW - TIME Asia | CAMBODIA: Will Justice Ever be Served?