What is Iran Thinking?

Has anyone been following the news about the British soldiers captured while patrolling waters near the Iran-Iraq border? I've been following the negotiations between Iran and England since this happened and all I have been wondering is 'What the hell is Iran thinking'? Do they actually expect us to believe that the confessions made by the British soldiers under their custody are legit? Do they really expect to accomplish anything by parading the captured soldiers in front of the media to plead for their lives? What good can possibly come out of putting these soldiers on trial in Iran? Is Iran trying to wreck diplomatic ties with Western Europe, in addition to the already severed ties with the US?

The British, thankfully, are not backing down and paying lip service to a horrific regime. They have offered proof that Iran captured the British soldiers in Iraqi water.

Iran isn't fooling any rational person with this charade. Furthermore, they are just inviting retaliatory action from the US and Britain, two military powers that they will never be able to overcome. This whole thing seems so dumb, but it's not like I have ever believed that Iran is capable of doing the right thing. They are the biggest risk to any sort of peaceful existence on the Middle East, and will likely be the cause of any war that may break our in the future.

This could get a lot worse before it gets better. Expect any completion of a war in Iraq to be followed up with a much more necessary military conflict with Iran.