Both Clinton and Carter know only too well that the key to peace in
the Middle East is not the development of influence over radical
Palestinian elements, but the curtailment of Israel's military might.
So long as Israel can strike at its neighbours with impunity using the
latest US military technology, the prospect for peace simply does not
exist. Peace can never be imposed down the barrel of a gun,
particularly while Israel continues to deny the Palestinians access to
their land and their statehood.

So will Obama attempt to threaten Israel with a reduction in military
support in order to force them to be more conciliatory at the
negotiating table? His pre-election rhetoric seemed to indicate that
this was not an option. However, developments in the Middle East may
force him to reconsider. Indeed, he may have no choice but to engineer
an increase in Israel's military vulnerability in order to encourage
her to make peace with her neighbours. Otherwise political and
economic developments in the region may do it for him, in a less
predictable manner.

The one thing Israel fears most is synchronised aggression on several
fronts. To date the prospect of this has been kept at bay by US
economic aid to Egypt and Jordan, and its military intervention in
Iraq. However, the US may not be able to afford the level of aid that
it has previously bestowed on Israel's neighbours. Moreover, US
influence in Iraq is scheduled to diminish rapidly in the next few
years, while open support for the Palestinians is set to become more
pronounced in Iraqi society. The pro-western Egyptian Government has
systematically given in to the demands of Islamic fundamentalists on a
range of domestic policy issues in the last few years. This has been
the price of ensuring internal stability, and increased support for
the Palestinian cause is sure to be high on the fundamentalist's
policy wish list.

While war-ravaged Lebanon is unlikely to constitute a threat, the same
cannot be said of Syria and Iran. Indeed, it is possible that the
former may be encouraged to be more reckless by the increasingly
radical behaviour of the latter. Attempting to bomb Iran's emerging
nuclear capability will not affect its growing military support for
the Palestinians.  And don't forget that imposing an oil-purchasing
embargo on Iran's oil is no longer an option.

Lastly, we cannot ignore the impact of the world economic crisis on
the fate of the Gulf's petro-dollars. The Gulf States have almost
certainly taken a knock on the London and New York markets and
prevailing low interest rates will not entice them to return too soon.
But return they must if western economic recovery is to occur. The
hidden cost of attracting reinvestment from the Gulf's oil states will
almost certainly include a hardening of western attitudes towards
Israel.

The next 24 months could see Israel's neighbours holding more cards
than at anytime in the country's brief history. The strength of the
pro-Palestinian lobby can only increase and Israel can only become
more isolated. The window of opportunity for Mr Obama to secure an
equitable and lasting peace appears very small.

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