GULF WATCH: Day 51 : A Daily Briefing Paper On Developments In The Crisis : Diplomatic Front:

President Bush warned that international sanctions “are going to take some time to work,” and Administration officials told members of Congress to prepare for a long standoff in the Persian Gulf.

Iraq expelled three U.S. diplomats and the military attaches of 11 European Community embassies in Baghdad. The United States, in turn, ordered three Iraqi diplomats, including the country’s military attache, to leave Washington.

The foreign ministers of the 15 member nations of the U.N. Security Council scheduled a Tuesday meeting to consider additional actions to address the gulf crisis, including a possible air blockade of Iraq.

Military Front:

Iraqi President Saddam Hussein warned his nation of an upcoming “mother and father of all battles” and pledged to fight to the finish against countries opposing Iraq’s occupation of Kuwait.

Iraq said two unidentified warplanes flying from Saudi Arabia penetrated its airspace by as much as 6 miles before turning back. A Pentagon spokesman said no U.S. aircraft have violated Iraqi airspace.

Economic Front:

Crude oil prices soared for a second day in a row as traders interpreted remarks by Iraqi President Hussein as signaling an increased likelihood of war.

A Middle East war could cause oil to spiral as high as $65 a barrel, the World Bank said. But it said the oil shock would be less severe than in the 1970s because many nations have strategic oil reserves and less energy-dependent economies.

Crisis Indicators:

* November crude oil futures: $35.43 per barrel, up $2.01

* Wholesale heating oil: $0.9558 per gallon, up $0.0568

* Wholesale gasoline: $0.9845 per gallon, up $0.0602

* Retail gasoline: $1.27 per gallon, up $0.004

* U.S. citizens still in Iraq and Kuwait: about 1,100

* High temperature in Dhahran: 95

* Dow Jones industrial average: 2,512.38, down 51.73 for the week