"I know, but— ...it still happened because of me. And— I hate to see you hurting, Uncle."
It wasn't their typical dynamic and Zuko wasn't sure how to act exactly because of that. But how much Iroh is still trying to be of comfort to Zuko in this, how clear it is that that's his priority even with such news, Zuko can't help but feel moved and extra cognizant of his role as the bearer of bad news here. He may not be at fault, but he can recognize his role here and still empathize all the same. And saying it out loud is a big show of progress for him, too, in his time spent away from home. He wants to be there for Iroh for once, let the tables turn in this, and so he deliberately doesn't release the hug until the old man does.
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It wasn't their typical dynamic and Zuko wasn't sure how to act exactly because of that. But how much Iroh is still trying to be of comfort to Zuko in this, how clear it is that that's his priority even with such news, Zuko can't help but feel moved and extra cognizant of his role as the bearer of bad news here. He may not be at fault, but he can recognize his role here and still empathize all the same. And saying it out loud is a big show of progress for him, too, in his time spent away from home. He wants to be there for Iroh for once, let the tables turn in this, and so he deliberately doesn't release the hug until the old man does.