Published: Mon, June 05, 2017
Markets | By Noel Gibbs

Saudi Arabia, Egypt And Other Arab Nations Cut Diplomatic Ties With Qatar

This is also partly because crude production in the United States, which is not participating in the cuts, has jumped by over 10 per cent since mid-2016 to 9.34 million bpd, close to levels by top producers Saudi Arabia and Russian Federation.

A low-priced airline based in the United Arab Emirates says it is suspending flights to Qatar along with other Emirati airlines over a growing diplomatic crisis.

Saudi Arabian Airlines has also suspended all flights to Qatar, it said on its official Twitter account on Monday, without providing further details.

Kristian Ulrichsen, a Gulf expert at the U.S-based Baker Institute, said if Qatar's land borders and air space were closed for any length of time "it would wreak havoc on the timeline and delivery" of the World Cup.

"While regretting the policies taken by the State of Qatar that sow seeds of sedition and discord among the region's countries, the UAE affirms its full respect and appreciation for the brotherly Qatari people on account of the profound historical, religious and fraternal ties and kin relations binding UAE and Qatari peoples". Qatar's main Hamad International Airport, for example, served around 9.8 million passengers in January-March, according to its website.

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"There is not much geopolitical risk premium priced into oil right now, (but) if tensions do ratchet higher between the key OPEC producers, like Saudi Arabia, Iran and Iraq, then the market will start paying attention to this", said Virendra Chauhan, an oil analyst at consultants Energy Aspects.

Saudi Arabia said it took the decision to cut diplomatic ties due to Qatar's "embrace of various terrorist and sectarian groups aimed at destabilizing the region" including the Muslim Brotherhood, al-Qaida, the Islamic State group and groups supported by Iran in the kingdom's restive Eastern Province.

Manned by personnel from the US Air Force, Army, Navy and Marines as well as coalition partner countries, the CAOC is "the nerve center" of air campaigns across the region, according to the Air Force.

The ministry's statement said Qatari citizens needed to leave Bahrain within two weeks and that air and sea traffic between the two countries would be halted.

So far, Emirates, the national airline of Dubai has confirmed it is suspending its flights to Qatar - as is Flydubai - from tomorrow, while Abu Dhabi's flag carrier Etihad is following suit.

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He said that he helped a man and his partner, even taking the woman into his arms because she was too upset to walk properly. She said police know the identity of the three attackers but will not release them yet because of the ongoing investigation.

The dispute between Qatar and the Gulf's Arab countries started over a purported hack of Qatar's state-run news agency.

The United Arab Emirates and Egypt have cut diplomatic ties to Qatar.

Bahrain says it is cutting diplomatic ties to Qatar amid a deepening rift between Gulf Arab nations.

Meanwhile in a statement carried by its official news agency, Bahrain accused Qatar of backing terrorism and interfering in Bahrain's internal affairs.

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