WASHINGTON — The soaring price of crude oil could lead to a windfall for Arab and Islamic insurgency networks.
A report by the Washington Institute said the unprecedented windfall in oil revenues could promote nuclear programs as well as fund Al Qaida, Hizbullah and other insurgency groups in the Middle East. Authored by Simon Henderson, the report said much of the funding to insurgency groups could be disguised as charity.
"Although most such charity is praiseworthy, there is concern that some money will flow to front organizations used by radical Islamist groups, countering the effect of government restrictions enacted in many countries under post-September 11 U.S. pressure," the report said.
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Henderson warned that oil revenues could facilitate nuclear power and other programs in the Middle East. The report said Egypt's nuclear program could serve as a response to Iran's efforts to develop an atomic bomb.
"High prices also give some Middle Eastern oil producers the economic means and justification to develop civil nuclear power, which inevitably raises fears of military applications and regional proliferation," the report said. "A rash of regional nuclear weapons programs prompted by Iran's efforts would be seen as the demise of the Nuclear Non-Proliferation Treaty and a breakdown in the global system that has provided diplomatic stability for the past 50 years."
The report said oil would exceed $100 per barrel in November. Henderson said OPEC could reduce production in an effort to maintain revenue.
"As prices have risen, many have wondered why the United States has not used its diplomatic muscle to convince OPEC leader Saudi Arabia to open its spare capacity and increase supply," the report said.
