GULF WATCH: Day 27 : A Daily Briefing Paper on Developments in the Crisis

Diplomatic Front:

Iraqi President Saddam Hussein said all women and children may leave Iraq today, but the State Department said Iraqi authorities continue to round up Americans, taking nine more into custody. Hussein met with hostages and told them he is willing to talk to President Bush and British Prime Minister Margaret Thatcher. The State Department dismissed the offer.

Meanwhile, the Soviet Union criticized the United States for ordering the expulsion of a majority of Iraqi diplomats in Washington, warning that the action could lead to a “spiral of escalation” in the conflict. Military Front:

The estimated cost of Operation Desert Shield was nearly doubled--to $2.5 billion--by the Defense Department. U.S. Navy warships reportedly stopped two cargo ships, with crewmen boarding one in the Gulf of Aqaba before allowing it to proceed to Jordan. In Egypt, Senate Armed Services Committee Chairman Sam Nunn (D-Ga.) expressed concern about the military burden being carried by the United States, and after meeting with Egyptian President Hosni Mubarak called for “more help from Egypt and from other countries on the ground in Saudi Arabia.” The United States, meanwhile, reportedly is planning to sell nearly $3 billion in new weapons to Saudi Arabia. Trade Front:

Stocks eked out slim gains Tuesday. Overall in the last three sessions of trading, the Dow Jones industrial average has leaped 131 points. Meanwhile, most OPEC ministers tentatively backed a deal permitting increased oil production to make up for losses arising from the gulf crisis. Crisis Indicators:

* High temperature in Riyadh, Saudi Arabia: 108

* Retail gasoline (U.S. average per gallon): $1.245, up $.010

* Wholesale gasoline (spot price per gallon): $.8913, up $.102

* Crude oil (spot price per barrel): $27.88, up $.31

* Dow Jones industrial average: 2,614.85, up 3.22

* Gold (per ounce): $385, down $3.30