Although it’s being overshadowed by coverage of the Beijing Olympics and John Edwards’ confession, the situation in the former Soviet state of Georgia, an important ally to the United States, is a volatile one that could have major implications for our country and in the presidential race. How Barack Obama and John McCain react to this unfolding crisis over the days and weeks ahead could go a long way in revealing their foreign policy strengths and weaknesses.

As for initial reactions, McCain, who was campaigning today in Iowa, said the United States should convene an emergency session of the U.N. Security Council, and we should work with the European Union to put pressure on Russia and help establish an independent peacekeeping force in the breakaway province of South Ossetia. “What’s most critical now is to avoid further confrontation between Russian and Georgian military forces,” he said.

Obama, who was interviewed during a refueling stop in Sacramento on his way to a Hawaiian vacation, said it’s important for us to work with international partners to end the conflict. “I wholeheartedly condemn the violation of Georgia’s sovereignty. I think it is important at this point for all sides to show restraint and to stop this arms conflict. Georgia’s territorial integrity needs to be preserved and now is the time for direct talks,” he said.

Meanwhile, as reports of additional Russian attacks come in, the U.N. Security Council has held two tense sessions and plans a third one Saturday in an attempt to avoid all-out war. Secretary of State Condoleezza Rice asked Russia to respect Georgia’s sovereignty and urged the country to stop aircraft and missile attacks and to withdraw its combat forces. Also, Georgia announced plans today to withdraw its 2,000 troops serving with coalition forces in Iraq and redeploy them at home.