International diplomats are stepping up their efforts to try to resolve the crisis with Iraq.
The Russian government has sent an envoy to Baghdad and on Tuesday U-S Secretary of State Madeleine Albright announced plans to visit Europe and the Middle East.
In Iraq itself - newspapers have warned against a military strike - saying the U-S President is trying to deflect attention from his own personal crisis by threatening Iraq.
The United Nations mission in Baghdad was getting on with its work Tuesday - even as the international tension mounted.
There is a continuing belief in the Iraqi capital that the United States is about to launch a military attack.
Washington wants to force Saddam Hussein's government to allow U-N weapons inspectors unfettered access to all buildings in Iraq.
In an attempt to avoid the crisis the Russian government has sent an envoy to Baghdad.
Moscow has considerable influence with the Iraqi leadership and it has resolved several previous rows between the U-S and Iraq.
Last November its Foreign Minister succeeded in persuading the Iraqi leader to re-admit American weapons inspectors whom he kicked out in October.
And two years before that - in November 1995 the then Russian Foreign Minister Andrei Kozyrev persuaded Saddam to withdraw troops massed close to Kuwait's border.
There is cautious optimism on the streets again.
"It is a good initiative if it leads to something fruitful. America deserves someone who can stand up to it and act independently."
SUPER CAPTION: Bassem Salha, Teacher
Iraqi newspapers have seized on the alleged scandal in Washington - heaping humiliation upon President Clinton.
There is a fear that Clinton may try to divert attention from his problems by attacking Iraq.
"All Clinton's scandals show that he is not a real president. I don't know - he is a man without morals or conscience and he is not worthy to be a national president - especially of the United States as a superpower."
SUPER CAPTION: Suham Ahmed, Housewife
There were yet more demonstrations in the capital against the continuing standoff.
About a thousand Egyptian workers who live in Iraq marched to an office of the United Nations Development Programme.
Carrying posters of Saddam - they beat drums and chanted anti-American slogans.
"We are here to protest against all the American conspiracy about the attacks carried out on Iraq. The Egyptian people today living in Iraq or in Egypt - support the people of Iraq."
SUPER CAPTION: Ahmed Hassan, Egyptian living in Baghdad
"We stand against American arrogance - which wants to humiliate the Arab Nation - represented by the great Iraqi people."
SUPER CAPTION: Mohammed Ali, Egyptian living in Baghdad
The demonstrators warned that a military strike by the United States could destroy American relations with the Arab world.