These two issues, along with Thor (vol. 2) #58, comprise the “Standoff” storyline (not to be confused with 2016’s “Standoff!” storyline that set the stage for the following year’s “Secret Empire” event, which was thoroughly discussed in the updated edition of my book). Besides having some touching moments between Captain America, Iron Man, and Thor—not to mention between Cap and the United States Army—this issue also features the gorgeous art of Alan Davis, who will also draw Avengers Prime in 2010 featuring the same three heroes.
At this point, the Odinson has become the All-Father since the death of his father and moved Asgard to the skies over New York City. He has also acquired worshippers once again—just like the good old days!—and in Thor #58 he learns that some of them in the small (and fictional) Eastern European country of Slokovia are being killed by that country’s military ruler. He intervenes personally in the country to protect his people, alarming the United States government and intriguing Doctor Doom in neighboring Latveria, both anticipating further destablization in the region (with very different reactions to the prospect).
The U.S. government sends Iron Man to calm Thor down, which he tries but fails to do in Iron Man #64. He returns wearing new armor powered by Asgardian energy that Thor gave him earlier (to study as a potential energy source for Earth) and an epic battle between them commences.
Just as the American military command orders their own forces to intervene, a new player steps in to challenge them…
…saying they couldn’t do anything anyway. (We’re not done with this confrontation, you’ll see.)
After (an) iron fist meets (the) Uru hammer, the resulting shock wave throws Cap back, triggering a memory that opens Avengers #63. I’m not sure we’ve ever seen him reflect on his thoughts as he fell into the water near the end of World War II, but he seems to have been at peace with death, confident that the good guys would win. It is a little surprising that he shows no regret that he won’t live on to do more, but we must remember that he wasn’t really a “superhero” or a symbol to all Americans yet; he may have regarded his mission as simply helping win the war, which he did.
He remembers opening his eyes to see Iron Man and Thor (and no one else that mattered) and how impressed he came to be by them…
…before turning his mind back to the purpose and asking, as the Kinks (and later Van Halen) did, “where have all the good times gone?”
Cap tries to show Thor how things are getting out of control…
…and Tony’s not helping (even after he deserts his fancy armor that couldn’t stand up to the Odinforce). Cap is forced to tackle his friend and then hit him where it really hurts.
“But I had to reboot, Cap! I had to install updates!”
Thor invokes one of Cap’s darkest World War II experiences to explain his need for vengeance, but Cap points out what it’s doing to the people he’s presumably avenging.
(Several years later, Cap will have to be told the same thing at the end of Civil War #7.)
Elsewhere, Doom watches with interest before he stirs the pot a bit…
…remotely triggering the weapons he “kindly” gave the Slokovians, which triggers Thor’s rage once again. Once the Russians threaten to get involved if the U.S. military intervenes, Cap knows what he and Tony have to do.
First, Cap tries again to stop Thor, who swats his friend away like a fly.
Cap tries to reason with the American commanding officer instead, explaining the consequences if they enter the fight, but the C.O. has his orders from the commander-in-chief. Cap tells the men to stand down and the C.O. tells them to engage…
…and despite Cap’s lack of official authority, the U.S. forces have so much respect for him that they follow his command rather than the orders of their president.
(I love this moment for what it says about Cap and the way soldiers look up to him, but in reality, they had no good reason to obey him. This is very different from recommending that a soldier disobey an illegal order; here, Cap is simply arguing that engagement would be unwise and counterproductive. Even if the soldiers agree, this does not justify disobeying a lawful command from their commanding officer, especially on direct authority of the commander-in-chief.)
Cap returns to try to talk sense into Thor again, expressing sympathy and understanding but reminding the Odinson of the futility of protecting his people with only a hammer (figuratively and literally).
Thor takes a mighty swing at Cap, and while the shield takes the brunt of the blow…
…it does not escape unscathed. (Tony appears to think it’s indestructible, apparently having forgotten the recent time he found it in pieces.) Cap continues his argument that war and murder are rarely the answer, especially for Avengers, to which Thor has a short and simple answer.
Thor pounds some new life into the shield and hails Cap’s fortitude before regretfully confirming that he is taking his leave.
In the end, Tony is upset that Doom benefited from the truncated conflict, but Cap is more concerned with what (or whom) the Avengers lost from it…
…and the Lord of Asgard shares his grief.
ISSUE DETAILS
Iron Man (vol. 3) #64, March 2003: Mike Grell (writer), Alan Davis (pencils), Robin Riggs (inks), Dave Kemp (colors), Richard Starkings and Jimmy Betancourt (letters). (More details at Marvel Database.)
Avengers (vol. 3) #63, March 2003: Geoff Johns (writer), Alan Davis (pencils), Mark Farmer (inks), Dave Kemp (colors), Richard Starkings and Albert Deschesne (letters). (More details at Marvel Database.)
Both collected in Avengers: The Complete Collection by Geoff Johns Volume 1 and Avengers: Standoff.
PREVIOUS ISSUES: Avengers #59-61 (December 2002-February 2003)
ALSO THIS MONTH: Captain America #7 (March 2003)
NEXT ISSUES: Avengers #65-67 (May-July 2003)
THE VIRTUES OF CAPTAIN AMERICA 
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