"I think Iran will back down," he responded, saying they would eventually be released. I hope he is right, but I told him that I thought Iran might hang them, just to make a point. Perhaps they are only being held as hostages, to trade for Iranian prisoners in Iraq, or as insurance against UN action.
However, Iran has hanged alleged spies in the past.
In addition, there may be a special significance to hanging Britishers, given England's prior history of imperial domination--Britain occupied half of Iranian territory, then called Persia, for many years. So, I wouldn't be too sure about Iran letting these poor souls go home, unfortunately. Especially given the context of war in Iraq and Afganistan, as well as related threats made against Iran by the British government.
Not just Persians and Arabs have trouble dealing with Britain. As I mentioned to Weinstein, even Israel felt the need to hang British military personnel, during the Yishuv's 1947 struggle for independence. Here's an account of the episode, from the Jewish Agency's website, Studies in the History of Zionism:
* Etzel's most daring operation was the organization of an escape from Acre prison, where dozens of prisoners were incarcerated -- members of Etzel and Lehi -- many sentenced to terms of imprisonment, others - to death. In a brilliantly planned operation, a group of Etzel members broke into the prison at the beginning of May 1947 and freed 41 Etzel and Lehi members held there. The British newspapers dubbed it the greatest prison break in history. In the battle that ensued, 5 Etzel members, including the operation's commander, were killed. 5 more Etzel fighters were taken prisoner by the British, of whom 3 were sentenced to death.After that, the British stopped hanging Jews.
The Etzel kidnapped 2 British sergeants and threatened to hang them if this sentence were carried out. The British did not believe the Etzel would actually hang two innocent British soldiers, and on the 29th of July, 1947, the 3 Etzel members were hanged in Acre prison. They were the last martyrs of the Jewish underground. The next day, Etzel executed both captured British sergeants.