Adding to the complexity of the situation, a U.N. report released just after the Baghdad talks said that inspectors had found ahighlevel of enriched uranium in Iran.
This year, Mottaki is back at Davos, and Barack Obama is in the White House after a campaign in which he said he was open to high-level talks with Iran.
In January, a high-level Iraqi delegation is expected at UN headquarters in New York for talks with Secretary-General Kofi Annan on how to break the deadlock.
The Labwani verdict comes a week after a ground-breaking meeting between Syrian Foreign Minister Walid Muallem and US Secretary of State Condoleezza Rice at a summit in Egypt - the first time the two countries held such high-level talks since the death of Mr Hariri in 2005.
And as a consequence, Minister Krishna led a delegation to Washington to follow up, and working with Secretary Clinton, conducted some very high-level talks.