Iran has found a big hole in the Western sanctions regimen, Oman’s Musandam Peninsula, which channels to Iran all the goods denied the Islamic Republic under sanction.

The Obama administration has invested major diplomatic and military efforts into persuading the Persian Gulf emirs to unite in a federation and mutual defense treaty according to two alternative Saudi blueprints – a NATO or a EU style pact. But those efforts were met with extreme reluctance.

While the Obama administration is pleased with the progress of secret diplomacy with Iran, Supreme Leader Khamenei does not expect practical results despite Iranian concessions on its nuclear program.

By early March, the US will have amassed 100,000 troops within reach of Iran, roughly equal to the 2003 Iraq invasion force, and enough to back up Barack Obama's pledge to stop Iran acquiring a nuclear bomb with military force.

As protesters prepare for Saudi Arabia's Day of Rage on March 11, fears grow across the Arab Gulf that the fall of Saudi King Abdullah will start a chain reaction against the emirs too and rock the world's oil markets.