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 Editor’s Note: The following report is excerpted from Joseph Farah’s G2 Bulletin, the premium online newsletter published by the founder of WND. Subscriptions are $99 a year or, for monthly trials, just $9.95 per month for credit card users, and provide instant access for the complete reports.

WASHINGTON – Iran could find itself cut off once again from access to the Suez Canal as a result of the forced removal of Muslim Brotherhood-backed Egyptian President Muhammad Morsi, according to a report in Joseph Farah’s G2 Bulletin.

Deposed by a military coup on July 3, Morsi had allowed Iran to use the canal after 30 years of being denied access by deposed Egyptian President Hosni Mubarak, who had the military’s backing until nationwide demonstrations demanded his ouster in January 2011.

Mubarak, a Sunni, had been on the outs with Shiite Iran since the 1979 Iranian revolution. One reason was he gave asylum to the U.S.-backed Shah of Iran, Mohammad Reza Shah Pahlavi, who had held that position since September 1941.

With Morsi granting Iran access to the Suez Canal, Tehran has had strategic naval access to the Mediterranean Sea and the ability to more directly reach its close ally, Syria.

Access to the canal has also given Tehran the ability to project naval power into the Atlantic Ocean, which it previously had a difficult time reaching.

Iran has announced that it will place its warships near the coasts of the United States.

With the military firmly back in power after ousting the democratically elected Morsi, sources believe it will revert back to banning Iran from passing through the Suez Canal.

In reasserting its control, the military opened fire on demonstrating Morsi supporters, turning the situation into a confrontation that suggests the potential for civil war in Egypt.

The Muslim Brotherhood in Egypt is very large and has considerable grassroots backing. While the Brotherhood has claimed that it will remain peaceful, elements are expected to turn violent due to its leadership being ousted by the military.

The entire unraveling of events in Egypt occurred after Egyptian military chief Gen. Abdel Fattah al-Sisi announced that Morsi had been removed from office due to the continuing unrest throughout the country.

In making the announcement, he was flanked by the chiefs of the three military services, opposition leaders, the pope of the Coptic Church and the sheikh of al-Azhar Mosque.

Al-Sisi then announced that Adly Mansour, chief justice of the Constitutional Court – an appointee of Mubarak – would replace Morsi as interim president pending new parliamentary and presidential elections.

Such a development shows that Morsi never was able to bring the Egyptian military, the security services, the judiciary and state bureaucracy under his control.

The Obama administration has not called the military removal of a duly elected president a “coup,” since that would prompt an automatic cut-off of military and economic assistance to Egypt.

However, it won’t preclude members of Congress determining that a military coup occurred in Egypt and decide to pass legislation cutting off those funds, which amount to $1.6 billion, of which $1.3 billion goes to the Egyptian military.

Despite its concerns over the removal of Morsi, the Obama administration quietly is backing the military, reminiscent of its support for the military-backed regime of President Hosni Mubarak until the Arab Spring occurred in Egypt.

The military helps maintain the security arrangement the U.S. had with Egypt, along with Saudi Arabia, Israel and Jordan.

For the rest of this report, and other Intelligence Briefs, please to go Joseph Farah’s G2 Bulletin:

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