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    Middle East
     Feb 2, 2006
Wanted: A new Middle East initiative
By Jephraim P Gundzik

As the Bush administration's influence in the Middle East continues to wane, the risk of strong unilateral action by Washington against a widening array of regional foes will increase. This risk will push international oil prices much higher and global economic growth much lower in 2006. Rather than producing Washington's desired outcome, every major regional initiative has backfired, greatly weakening US influence.

The recent Hamas victory in the legislative elections held in the Palestinian territories has propelled another arch-enemy of the



Bush administration into power in the Middle East. A new Hamas-centered government in the Palestinian territories will join the governments of Syria, Iran and Iraq as Washington's self-made enemies. Not only will these powers coalesce around one another, they will gather increasing regional support as well as support from other world powers such as Russia, China and to a lesser extent the European Union.

These developments are intensifying pressure within the Bush administration for strong action that will re-establish Washington's hegemony in the Middle East. Such action could be a unilateral strike, with assistance from Israel, on Syria and/or Iran. Other actions taken by Washington could be efforts to destabilize the new governments in the Palestinian territories and in Iraq.

The growing risk of such actions has already begun to push the international price of oil higher. This risk can be expected to lead international oil prices above US$100 per barrel in the first half of 2006. And the materialization of any effort by the US to re-establish its influence militarily in the Middle East could push international oil prices over $150 per barrel. By the second half of 2006, much higher oil prices will begin to exert tremendous drag on the global economy, slowing economic growth worldwide. Thus US military action in the Middle East will push the world into economic recession.

In 2002, the first administration of President George W Bush implemented a dramatic change in US Middle East policy with the invasion and occupation of Iraq. Though the US had a strong hand in regional events since the 1920s, the invasion and occupation of Iraq marked Washington's first attempt to subjugate any country in the Middle East militarily. After failing to find any weapons of mass destruction or links between Iraq and al-Qaeda, the Bush administration settled on democratizing Iraq as the objective of US military action in the country.

Beneath even this veneer, the real goal of the administration was installing a pro-Washington government that would provide a reliable source of petroleum imports and have an amicable disposition toward a permanent US military presence in Iraq. None of these goals have come close to being fulfilled. The descent of Iraq into near-civil war has reduced the country's crude-oil output. The recent election of a Shi'ite-dominated pro-Iranian legislature in Iraq portends the creation of a new anti-American government that will demand the withdrawal of foreign troops from the country.

The Bush administration's next significant Middle East policy initiative came in 2003 and was designed to produce permanent peace between Israelis and Palestinians by creating a viable Palestinian state. This initiative, ironically named "the roadmap to peace in the Middle East", has foundered. Neither Israel nor the Palestinian Authority has heeded the terms of the roadmap, making peace between these parties more elusive. To a large degree, the roadmap's failure to advance the cause for a Palestinian state delivered the stunning Hamas victory in last month's legislative elections.

The Hamas victory has been accompanied by calls for pragmatism in the new Palestinian government from nearly every quarter of the world - except from the US, Germany and Israel, all of which immediately cut or threatened to cut aid and commerce cash flows to the Palestinian territories. In contrast, the United Nations, Russia and the EU have all decided not to interrupt aid flows to Palestinians.

By signaling their inability to deal diplomatically with what will be a new Hamas-centered government, the US and Israel are abdicating any influence over the new Palestinian government to other regional and world powers. Both Iran and Saudi Arabia are likely sources from which larger aid flows to Palestinians will originate. Russia could also increase aid flows to the Palestinians, while the EU finds itself at home on the fence.

Not long after introducing the roadmap, the Bush administration sought a behind-the-scenes method to contain and reverse Iran's nuclear ambitions. Washington undoubtedly played a strong role in formulating the demands of the EU-3 (France, Germany and Britain) that Iran relinquish its right to mastering the nuclear fuel cycle for civilian nuclear power purposes. The untoward EU-3/US demands on Tehran have set the stage for conflict between Iran and the West, not Iran and the rest of the world.

The EU-3 and the US have worked very hard to move Iran's nuclear dossier from the International Atomic Energy Agency (IAEA) to the UN Security Council, from which economic sanctions can be applied to Tehran. Russia and China have worked equally hard to keep Iran's nuclear dossier within the IAEA in order to contain the threat of sanctions against Iran. Though heralded in the Western press as a unified front against Iran, the recent agreement among China, France, Russia, the United Kingdom and the United States to "report" Iran to the Security Council is a Pyrrhic victory for the West.

Russia's and China's economic and geopolitical ties with Iran make it very unlikely these two countries would support economic, or any other, sanctions against Tehran. By delaying any Security Council action until March at the earliest, Russia and China are giving Iran time to comply fully with the IAEA to weaken the West's case against Tehran further. The low probability of Security Council action against Iran increases the probability of unilateral US action against Iran. As far as Washington is concerned, the case for attacking Iran must only be made to Americans - a process that is already under way.

The dramatic diminution of Washington's status in the Middle East is strengthening regional ties against the US, isolating Washington further from the region and from other world powers. The future actions of the Bush administration in the Middle East are likely to be underscored militarily and violently as Washington struggles to re-establish its influence in the region.

Jephraim P Gundzik is president of Condor Advisers, Inc. Condor Advisers provides country risk analysis to individuals and institutions globally.

(Copyright 2006 Asia Times Online Ltd. All rights reserved. Please contact us for information on sales, syndication and republishing .)


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