EXTREME POSITIONS WIN

Israeli Prime Minister Ariel Sharon may step up his attacks on Palestinian targets, while Islamic fundamentalist groups and rogue leaders such as Iraq's Saddam Hussein are emboldened, creating more instability in the region.

MODERATES ARE THREATENED

U.S. allies, such as Jordan, Egypt, and Saudi Arabia, could be caught between U.S pressure to hit terrorists and demands of their own people to give more direct aid to the Palestinian cause.

U.S. MAY ACT

The White House may be tempted to lash out at Islamic groups and attack suspected host regimes such as Iraq.

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