Israeli military sources said intelligence surveillance has increased its alert over the prospect that Egyptian troops would be ordered to cross the Suez Canal to the western Sinai peninsula, stressing that the effort would climax next month when Egypt's Third Army is scheduled to hold an exercise.

Israeli sources Egyptian President Hosni Mubarak is being pressed by the Palestinians to launch a military move that would deter Israel from any attack on the Palestinian Authority. "So far, the sources said, Mubarak has resisted", according to MENL report.

The scenario by many government officials and strategists is that such a war would engulf Iraq, Jordan, Lebanon and Syria. They said Egypt could be swept into such a conflict.

The Egyptian Third Army is scheduled to conduct an exercise near the Suez Canal next month. Under the 1979 Peace Treaty with Israel, Egypt cannot move more than several thousand troops into central Sinai. The eastern portion of the peninsula is demilitarised

Russian strategist Yevgeney Stanovsky, head of the Moscow-based Middle East Institute said a regional war is inevitable in wake of the failure of international efforts to implement a ceasefire.

"Israel has not raised the issue formally with Egypt and has not asked that the exercise be limited,", the sources said, adding that high-ranking military commanders have been warned against raising the issue publicly.

"We don't want to speak about the possibility of escalation with Egypt because we have a peace treaty", a senior military source said.

Syria’s Prime Minister Mostafa Miro traveled to Baghdad last Sunday and was received by the Iraqi dictator Saddam Hussein, who offered Iraq’s "full support" in case Syria was attacked by Israel.

"Iraq will stand by Syria and provide support, including military", Iraqi Vice President Taha Yassin Ramadan said on Monday.

Syria also fought in the 1991 international coalition that ousted Iraq from Kuwait after seven months of occupation.

But tension eased between the two countries after the confirmation of Mr. Bashar Asad as Syria’s new President, paving the way for normalisation ties, opening diplomatic missions, and cancelling visa formalities for people travelling between the states and increasing trade volume.

"We urgently need more Arab solidarity to face up to the hostile policy of Israel, which is trying to annihilate the intifada of the Palestinian people by force," Miro told Iraqi hosts, who reciprocated.

"All aggression against Iraq is an aggression against Syria", warned Miro, who is accompanied by a delegation of businessmen.

Meanwhile, Iran, another country staunchly hostile to Israel announced last week that it had completed development of a 155 mm towed artillery system.

The effort could lead to an upgrade of aging U.S.-built howitzers supplied to Teheran during the 1960s and 1970s. The upgrade includes a new 39-calibre barrel that can fire shells up to a range of 30 kilometres.

The London-based Jane's Defence Weekly reported that the state-owned Hadid Armament Industries Group is carrying out the howitzer project. The group has manufactured a complete 155 mm/39-cal towed artillery system and is building 122 mm and 155 mm barrels used in Iranian self-propelled artillery systems.

The new Iranian howitzer is not regarded as an advanced system. The HM41 does not have a load assist device and its maximum rate of fire is four rounds per minute.