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WASHINGTON (Reuters) - U.S. President Barack Obama has set a September deadline for Iran to respond to his offer of talks, but it seems increasingly likely the Islamic Republic, shaken by the worst unrest in decades, will miss it.

The big question is what Obama will do next. Analysts say he has few options, hardly any of them good. Here are some of the possible courses of action he could pursue.

SANCTIONS

Iran's president, Mahmoud Ahmadinejad, sworn into office for a second term last week, is preoccupied with shoring up his legitimacy, which has been significantly weakened by the post-election turmoil. Responding to Obama's offer of talks is probably not a top priority for him right now, and Washington needs to factor this into its decision-making, analysts say.

Obama has said he will review his policy of engagement toward Iran and consul... >>>