We already knew that Iran is controlled by religious extremists.  Iran's real leader in ultimate power is not a president, but a "supreme" religious leader who punishes anybody who criticizes him or his authority.  That included the current supreme leader's younger brother, who was severly beaten for criticizing his authority years ago, along with several journalists in prison.

Israel and America's fears have been warranted.  Nuclear arms in the hands of this dictator would be a risk to the civilized world.

But what about "the only democracy in the Middle East?"

Soldiers in Israel are now confirming that within the high ranks of Israel's military are religious zealots, according to at least one army commander's account that has been recently distributed.

"Their message was very clear: we are the Jewish people, we came to this land by a miracle, God brought us back to this land and now we need to fight to expel the gentiles who are interfering with our conquest of this holy land," he said.

He went on to describe the deep religious culture and zealotry of Israel's military led by a powerful Israeli rabbi within the military who has advised that showing mercy towards a "cruel enemy" was "terribly immoral" and told soldiers they were fighting "murderers".

Israel's new prime minister designate is Benjamin Netanyahu, himself an extreme figure, who has stated among other things that the problem of Iran is a greater problem than the global financial crisis.

Which brings us to peak oil.  Production numbers for crude oil have peaked in all countries of the world except for Saudi Arabia, Iraq and Kuwait.  Iran, their next door neighbor, saw production peak in the 1970's, and many believe that Saudi Arabia, Iraq and Kuwait are next.  Today's economic calamity has caused a temporary drop in demand for oil.  Meanwhile, worldwide supplies continue to drop and inexpensive production capabilities continue to fall.

In the midst of that backdrop, fanatical Iranian and Israeli leaders eye each other for war.  Iran's top weapon is its ability to fund terror and disrupt oil supplies in the Middle East.  Many observers believe Iranian leaders will do the more reasonable thing and back down.  But these are not reasonable leaders.  They are moved by religious text.  Many believe Israeli leaders will do the reasonable thing and allow the world to confront Iran together.  But they are not reasonable leaders either, as they are moved by a deeply religious military culture.

So while the world economies bleeds there is a darker drama forming.  The world economy is depending on cheap crude oil to assist in a recovery.  But Benjamin Netanyahu, the new leader of Israel, has already said that is not his top priority.