In fact, they have gone nuclear! France has signed a deal with Libya to supply a new reactor. And Sarkozy said the West should trust Arab states to develop such technology for peaceful purposes or risk a war of civilizations. Saudi Arabia, Bahrain, Kuwait, Oman, Qatar and the UAE are all seeking "peaceful" nuclear energy, MAINLY for water desalination (wink, wink). As you have keenly observed, all the key players are adding to this powder keg. Besides Russia, Germany also has to contend with the arms proliferation by China and France. The German FM has his work cut out for him.
Turkey: 5 killed in clashes between authorities and PKK (Reuters)
from the article: German FM criticizes proposed U.S. arms sale to Middle East