and what we're doing right...

Zakaria: When the supreme leader, Ayatollah Ali Khamenei, declared the election of Mahmoud Ahmadinejad a "divine assessment," he was indicating it was divinely sanctioned. But no one bought it. He was forced to accept the need for an inquiry into the election. The Guardian Council, Iran's supreme constitutional body, met with the candidates and promised to investigate and perhaps recount some votes. Khamenei has subsequently hardened his position but that is now irrelevant. Something very important has been laid bare in Iran today --- legitimacy does not flow from divine authority but from popular support.

CNN: There have been protests in Iran before. What makes this different?

Zakaria: In the past the protests were always the street against the state, and the clerics all sided with the state. When the reformist president, Mohammed Khatami, was in power, he entertained the possibility of siding with the street, but eventually stuck with the establishment. The street and state are at odds again but this time the clerics are divided. Khatami has openly sided with the challenger, Mir Hossein Moussavi, as has the reformist Grand Ayatollah Montazeri. So has Ali Larijani, the speaker of the parliament and a man with strong family connections to the highest levels of the religious hierarchy. Behind the scenes, the former president, Akbar Hashemi Rafsanjani, now head of the Assembly of Experts, another important constitutional body, is waging a campaign against Ahmadinejad and even the supreme leader himself. If senior clerics dispute Khamenei's divine assessment and argue that the Guardian Council is wrong, it is a death blow to the basic premise behind the Islamic Republic of Iran. It is as if a senior Soviet leader had said in 1980 that Karl Marx was not the right guide to economic policy.

CNN: What should the United States do?

Zakaria: I would say continue what we have been doing. By reaching out to Iran, publicly and repeatedly, President Obama has made it extremely difficult for the Iranian regime to claim that they are battling an aggressive America bent on attacking Iran. In his inaugural address, his New Year greetings, and his Cairo speech, there is a consistent effort to convey respect and friendship for Iranians. That is why Khamenei reacted so angrily to the New Year greeting. It undermined the image of the Great Satan that he routinely paints in his sermons. In his Friday sermon, Khamenei said that the United States, Israel, and especially the United Kingdom were behind the street protests, an accusation that will surely sound ridiculous to most Iranians. The fact that Obama has been cautious in his reaction makes it all the harder for Khamenei and Ahmadinejad to wrap themselves in a nationalist flag.