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$30 million into the Hamas
coffers to escalate its violent
activity against Israel, a
phenomenon which is ex-
pected to increase its back-
ing among Palestinians (at
the expense of the PLO) and,
more ominously, among
Israeli Arabs.
Of more immediate rel-
evance to Washington,
however, Iran has challeng-
ed both the Gulf states and
the industrialized world by
seizing the islands of Abu
Musa and the Greater and
Lesser Tumbs, which had
been jointly administered
with the United Arab
Emirates ad which control
access to the narrow mouth
of the Gulf.
More than one-half of the
world's oil supplies pass
through this vulnerable
waterway and Iran is re-
ported to be acquiring at
least two Russian sub-
marines that will be based in
the Gulf to control move-
ment of the giant tankers
which provide the lubricant
for the industrialized world.
In a region wracked by ter-
ritorial disputes, Iran has
revived its claim to Bahrain
and is also moving to split
the fragile, six-nation Gulf
Cooperation Council (GCC),
which was established in the
1980s to provide tacit aid to
Iraq during its war with
Iran.
Middle East sources are
particularly concerned that
Iran has thrown its support
behind Qatar (population
250,000), one of the smallest
Gulf states, in a border
dispute with neighboring
giant Saudi Arabia.
Qatar recently claimed
that Saudi forces initiated a
shoot-out that resulted in
the Saudis seizing a strip of
Qatar territory and left
three people dead, but Saudi
authorities have dismissed
the incident as a clash bet-
ween local Bedouin.
Iran's support for Qatar
has immeasurably com-
plicated the issue and the
most immediate impact is
likely to be the cancellation
of the annual GCC summit
scheduled for next month.
Western sources are
surveying developments
with growing anxiety and
are expressing concern that
if the Gulf states do not hang
together, they will hang
separately. They warn that
Iran's strategy is indeed
aimed at destroying the
GCC, splitting and weaken-
ing the individual Gulf
states and making them
more susceptible to
Teheran's territorial ambi-
tions and to its radical mes-
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