ABSTRACT
America's policies and position in the Middle East were affected most significantly by developments that occurred in the final months of the year. Government was perceived and presented as the main source of inspiration and support for anti-American terrorism. But in the latter part of 1986 the campaign abated as the Administration displayed hesitant position toward Syria and subsequently was embarrassed by the disclosures of October. In the regional politics of the Middle East it was the lingering war between Iran and Iraq that remained the most salient factor. The decline of oil revenues has already been mentioned as an important factor shaping regional politics in the Middle East, Its repercussions on the economy and politics of such states as Egypt and Syria have also been noted. Israeli politics were governed by question of the "rotation" of power agreement. In October 1986, it did take place, but the uncertainty regarding the future of the National Unity Government persisted.
