The nuclear talks in Baghdad between Iran and the Permanent members of the UN Security Council plus Germany (P5+1) failed to produce a breakthrough. The bad news is that time is running out. By July 1, the West will escalate with an embargo on oil and sanctions on Iran’s Central Bank. Iran will respond in kind and the situation may get out of control. The good news is that the ball is in Europe’s court and — unlike America — the EU has the ability to make diplomacy succeed in the short term.