A proxy war between Sunni and Shia Muslims, which could dramatically further destabilize the Middle East, may be about to erupt, sources are reporting. It would pit Iran, Syria’s regime and Hezbollah on one side and Turkey, Qatar, Saudi Arabia, other Arab states and Syrian rebel forces on the other may, according to a report by Ryan Mauro in Joseph Farah’s G2 Bulletin.

The individual indicators are cumulative:

Just about a week ago, the European Union agreed to an embargo on Iranian oil after Saudi Arabia promised to increase production to make up the difference. Iran immediately threatened that Arab countries assisting with the embargo would be “held responsible” and “one cannot predict the consequences.”

Clinton says Assad regime downfall “inevitable”
Russia main obstacle to stronger U.N.S.C. resolution.  

U.S. Secretary of State Hillary Clinton, addressing a meeting of the U.N. Security Council Tuesday, said the international community must support the downfall of the Syrian regime.

"We all know that change is coming to Syria," Clinton told delegates. "The question is how many more innocent civilians will die before (President Bashar) Assad bows to the inevitable, and how unstable a country he will leave behind."

Arab League suspends Syrian membership.
Future for Israel unclear.
Over 3,500 killed in ongoing violence.  

Syrian President Bashar al-Assad has unleashed more deadly violence against protesters this week, but both Arab leaders and Israel are beginning to assess what kind of Syria may emerge if and when his regime collapses.

Cells transfer surface-to-air missiles.
Iran continues to arm Hamas.
Hamas pledges to destroy Israel.  

Egypt intercepted Libyan surface-to-air missiles bound for Gaza, according to media reports over the weekend.
 
Cairo arrested five smuggling cells over the last few months as they were ferrying the weapons towards Gaza.