GULF WATCH: Day 96 : A daily briefing paper on developments in the crisis : Hostage Front:

A steady stream of emissaries urged Iraq to release foreign hostages, despite concern that direct appeals were undermining the coalition allied against Iraq.

Among those in Iraq to discuss hostage releases: a former prime minister of Japan, former West German Chancellor Willy Brandt and a delegation of Irish legislators. A former prime minister of New Zealand is headed there, as is a former prime minister of Denmark and the wives of 10 British hostages.

Military Front:

Secretary of State James A. Baker III and Saudi Arabia’s King Fahd reached a new military command and control agreement. It guarantees that American troops will be under the command of American officers if they launch an offensive operation against Iraq. Details of the pact were not disclosed.

Iraq threatened to attack Arab countries participating in the U.S.-led multinational force if war breaks out.

The U.S. aircraft carrier Midway and its seven escorts entered the Persian Gulf. The 75 aircraft aboard the Midway can strike at targets in Iraq or Kuwait without refueling.

Economic Front:

Oil prices started the week sharply lower. Crude oil for December delivery on the New York Mercantile Exchange tumbled $2.04 to $31.96 a barrel at Monday’s close. The markets were apparently reacting to the Saudi oil minister’s statement that his country is pumping oil at the fastest rate in 10 years.

The Reserve Mobilization: * Army reserves: 24,057 * Navy reserves: 4,529 * Air Force reserves: 4,897 * Coast Guard reserves: 511 * Marine reserves: 174 * Total mobilized: 34,168