Tony Badran from the Foundation for the Defense of Democracies reports in NOW Lebanon that Kuwaiti and Saudi officials have unearthed a group of Iranian agents allegedly tied to the Islamic Revolutionary Guard Corps (IRGC) and living on Kuwaiti soil. In light of this recent security breach, the Kuwaiti government is prepared to move forward with an overhaul of the Gulf Cooperation Council (GCC) security agreement. In response to the allegations, Revolutionary Guard PR man General Ramezan Sharif stated that "the allegation is a Zionist plot to portray a dreadful image of the IRGC in the region."

Here is Badran's conclusion regarding the incident:

All this shows how vulnerable Iran's Arab neighbors are to Iranian manipulation, not least when it comes to their sectarian make-up."¨

While its conventional military power is limited, Iran has engaged in such manipulation through the IRGC's Al-Quds Force, amplifying its sway through its surrogates and through arms smuggling. The potential interplay between a nuclear Iran and its regional alliances raises serious doubts about the effectiveness of a containment strategy directed against Iran - which is, nevertheless, fast emerging as a consensus strategy in Washington. Especially unconvincing is the notion that the United States can place the burden of its containment efforts on the shaky scaffolding of the Gulf Arab states."¨
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Iran's objective is to replace the US as the primary power in the Middle East, and to reshape the region's security architecture. Tehran has been pushing the GCC countries to sign a new, collective security treaty with Iran, which has presented itself as the new regional security guarantor, therefore, implicitly, the acknowledged regional hegemony. Iran has been making it clear to its neighbors that the presence of American forces on their territory is a "source of instability" that must end. If Iran goes nuclear, it will have even more means to persuade these states of its displeasure."¨ "¨

How the West responds to this extension of Iranian primacy in the Gulf will directly affect whether or not the GCC remains a friendly area for the United States and her allies. It also portends disaster for the energy industry should the conflict turn hot. These factors -- coupled with the financial shakeups in Abu Dhabi and Dubai -- have the potential of either liberating or enslaving these small oil sheikdoms.