Sen. Lindsey Graham says the United States and its ally Israel face serious consequences if Egyptians can't hammer out a solution and re-form democracy.
The Israeli-Egyptian peace treaty would likely be done away with, and Americans could expect skyrocketing oil prices if Egypt becomes a failed state, the South Carolina Republican told Fox News Channel on Wednesday.
"The Suez Canal is a vital economic artery for that part of the world," Graham said. "Our military uses it. Al-Qaida will fill in any vacuum created by a failed state."
Egypt imposed a state of emergency Wednesday after 278 people were killed in a crackdown of supporters of ousted President Mohammed Morsi.