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Sen. Graham Says a Failed Egyptian State Would Not Be Good for Israel or the US

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.

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