Iran has performed the expected act of broadcasting the captive Sailors on state run Iranian Television. (Remember: Iranian citizens can’t see opposing views anymore because the government confiscated Satellite dishes, and restricted internet access in the preceding months.) They have stated they will free the woman captive, and she appeared on Iranian TV in the requisite scarf.
Tony Blair has stated that they are stopping all interaction with Iran excepting that to do with freeing the hostages. To up the ante Iran has demanded that Britain apologize before they will release the sailors.
Powerline has a good post with analysis and updates in it.
Earlier posts here withÂ lots of links to the articles on this and analysis.