My synopsis on oil in the Israeli-Arab conflict resides in this: oil has no bearing on the conflict itself, but rather the diplomatic strategy in providing support from major industrialized nations to either the arabs who have the oil (ex: russia) or the Israelis who don't have the oil (but can use bargaining chips to lower prices with peace agreements) (ex: America).
OIL IS A DIPLOMATIC WEAPON FOR OUTSIDERS- no baring to the conflict itself. SURPRISE!
Ali, Sheikh Rustum. "6: The Arab-Israeli Conflict and the Oil Weapon." Oil, Turmoil, and Islam in the Middle East . New York: Praeger, 1986. 106-136. Print.
His History of conflict
simultaneously while zionism was rising (20s,30s):
"At this time the Arab world was passing through some of its most difficult days. The French capture of Algiers in 1830 paved the way for Western domination of the Arab world. At the same time an Arab revival -- a renewed sense of language and cultural pride and a desire for self-government-was emerging. These sentiments found little sympathy with Ottoman authorities, with their predilection for centralism, and were adroitly exploited by their enemies." (pg.106-107)
OIL AS A WEAPON
"Except for the first, oil figured significantly in all Arab-Israeli wars. In 1948, Arab oil production was negligible. Iran was the major Middle East producer. Britain still had complete control of the oil supply passing through the Suez Canal. In 1956, oil shipments via the canal to Western countries were blocked. In 1967, the canal was closed indefinitely.
In 1973, Egypt and Syria launched full-scale military attacks against Israeli occupation forces. The Arab oil weapon fully came into play. There was a five-month embargo on oil shipments to the United States and the Netherlands. A partial embargo was in effect against other nations.
Although the decision would be much more serious than in 1973, most observers believe that a renewed Arab-Israeli war would precipitate a more severe oil embargo. It is also axiomatic that the United States would not permit Israel to be destroyed in a war. By the same token, Soviet support for the Arab cause cannot be assured. The Soviet Union backed out of its support of the Arab war effort in 1967. Again in 1973 it did not fulfill its announced intention to send volunteers to the Middle East as soon as the United States put its strategic forces on alert.
The two superpowers may come to terms in the new economic game now in progress in the Middle East. All nations are interested in securing oil supplies at affordable prices. By imposing an embargo the producing and exporting Arab nations turned the Middle East crisis into a global trauma. Even the communist nations and many Third World countries-the main supporters of the oil price increase -are feeling the pinch of the energy crisis.
Diplomacy has had a chance to settle the Middle East crisis, and its value is not completely lost. It can still succeed, provided the Palestinians refrain from calling for Israel's destruction and settle for a homeland on the West Bank of the Jordan River and the Gaza Strip. " (pg.110-111)
Industrial Weaknesses & Diplomacy
"The Arab-Israeli conflict has created a political climate in the Third World in support of oil price increases. Essentially, the price increases were a revolutionary attempt to seize control of the resource and radically redistribute the wealth. The political and strategic implications of the oil weapon must be seen in light of the role of the oil weapon in the struggle for political hegemony among various preindustrialized nations. The London-based International Institute for Strategic Studies examined this changing situation, concluding:
This was the first time that major industrial states had to bow to pressure from pre-industrial ones. . . . The victory upset the hierarchies of power long enjoyed, or resented, according to one's station, and opened up prospects of quite new political balances. By the same token, it was by far the biggest extension of the world's effective political arena since the Chinese Revolution. 6
The Middle East situation, with regard to the Arab-Israeli conflict, has changed little, except that under the Camp David agreement Egypt got back its land from Israel. The question now is whether the Arabs can use their petrodiplomacy bargaining power in the future. "
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