The six-nation Gulf Cooperation Council (GCC) angered Iran and Iraq with the communique issued at the end of their December 2000 summit. The communique called on Baghdad to comply with UN resolutions, as well as to end its criticism of Saudi Arabia and Kuwait. The GCC backed the United Arab Emirates in a territorial dispute with Iran over three Gulf islands.

Iran and Iraq both accused the GCC of being puppets of American foreign policy.

However, many Westerners will not view the GCC as friends in light of its decision to reduce oil production to counter falling prices and boost profits. Even Saudi Arabia pushed for a cut in production of between 1.5 million and 2 million barrels per day. The six Gulf monarchies, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, account for 45 percent of the world's reserves and presently provide about 20 percent of the world's crude.

The GCC members were able to set aside differences and reach an agreement on plans that could boost their 5,000-member Peninsula Shield defense force to 25,000. In the immediate future, this development could reduce the dependence of GCC members on the U.S. military for defense.

Persian Gulf nations, as well as Israel, may again be looking to the United States and its European allies for protection from the Iraqi dictator, Saddam Hussein. An Iraqi military engineer who recently defected to the West claims that Hussein has at least two operational nuclear bombs and is working on more.

Hussein has threatened to destabilize the efforts of the United States to negotiate a peace settlement between Israel and the Palestinians with any means at his disposal. U.S. officials, including President Bush, Vice President Cheney and Secretary of State Powell, have warned that any attempt by Hussein to build a weapon of mass destruction could lead to military action.

Sources: BBC, Telegraph Group Ltd.