GULF WATCH: Day 155 : A daily briefing paper on developments in the crisis

Diplomatic Front:

Iraq said it is “studying” President Bush’s proposal for talks between Secretary of State James A. Baker III and Iraqi Foreign Minister Tarik Aziz on Monday, Tuesday or Wednesday in Geneva. The White House said Bush is making “one last attempt to go the extra mile for peace” but reiterated: no concessions.

In other diplomatic efforts, the U.N. secretary general indicated that the Security Council may want to meet before the Jan. 15 deadline to consider a response if Iraq does not withdraw from Kuwait; Egypt’s president met in Libya with leaders of Syria, Libya and Sudan; a French representative arrived in Baghdad, and officials of several Mideast countries called for the Organization of Islamic Conference, a group of Islamic states, to attempt to negotiate a settlement.

Political Front:

Democratic congressional leaders canceled a three-week recess and announced that Congress will hold a full-scale debate on President Bush’s Mideast policies. The leaders also reiterated their call for patient reliance on economic sanctions instead of swiftly launching a massive attack if Iraq fails to withdraw from Kuwait by the U.N. deadline of Jan. 15.

Economic Front:

Oil prices plunged to their lowest levels since Iraq invaded Kuwait, with traders responding to hopes for a peaceful solution to the Persian Gulf crisis. On the New York Mercantile Exchange, light crude oil for delivery in February fell as low as $24.90 per barrel late Thursday morning before closing at $25.48. The last time prices were under $25 a barrel was Aug. 3, the day after the invasion, and since the invasion they have been as high as $41.15.

Troop Deployments in Gulf:

U.S. forces: 335,000

Allied forces: 245,000

Iraqi forces: 530,000