Published: Tue, June 20, 2017
World | By Paul Elliott

All Qatar Airways offices have just been closed down in the UAE

All Qatar Airways offices have just been closed down in the UAE

"Senegal has decided, from this day, Wednesday, 7 June 2017, to recall for consultations its ambassador in Qatar", the foreign ministry said in a statement.

Those breaking ties with Qatar are the UAE, Saudi Arabia, Egypt, Bahrain, the Maldives, Mauritania and Libya's eastern-based government.

On Monday, Saudi Arabia and three of its allies cut off diplomatic and economic relations with Qatar, a tiny, energy-rich emirate in the Persian gulf.

Qatar had strongly supported Morsi's Muslim Brotherhood group and his elected but divisive government, while Saudi Arabia welcomed the military overthrow and lavished aid on Egypt in the months afterward.

Federal Bureau of Investigation experts visited Qatar in late May to analyse an alleged cyber breach that saw the hackers place the fake story with Qatar's state news agency, the U.S. broadcaster said.

Although the crisis was resolved when Qatar made some concessions, the leaders did not fundamentally change their policies.

Qatar's credit quality would decline if tensions with its Gulf neighbours continue for much longer, raising the country's debt ratio and hurting banks' liquidity, Moody's ratings agency said on Thursday.

The actions taken by Saudi Arabia and its allies amounted to "a clear breach of the worldwide law and won't result in a positive impact on the region but will have a negative one", he said, also hitting out at the terrorism blacklist.

That's exactly how Qatar planned it - perhaps Qatar's greatest leverage in its ongoing dispute both with Trump and its larger Gulf neighbors.

Egypt is asking the U.N. Security Council to investigate reports that Qatar "paid up to $1 billion to a terrorist group active in Iraq" to free 26 hostages including members of its royal family, which would violate U.N. sanctions.

Beyond the current crisis with Qatar, Trump's unequivocal support has emboldened a newly assertive Saudi Arabia.

Trump said Tuesday that leaders of Saudi Arabia and its regional allies had warned him that Qatar was funding "radical ideology" after he demanded they stop financing militant groups.

Tillerson told reporters at the State Department that the crisis, which has cut transportation links and trade, had begun to hurt ordinary people in Qatar, impaired business dealings and harmed the USA battle against the Daesh (so-called IS) militant group. Qatar vehemently denies such support. Some 38 percent of Qatar's food comes across the border from Saudi Arabia, Mazen Al-Sudairi, head of research at Al Rajhi Capital, a Riyadh-based financial services company, said Tuesday in a Bloomberg TV interview.

It wasn't immediately clear how Trump's sharp condemnation might affect USA cooperation with Qatar, which hosts some 10,000 US troops and a major USA air base that serves as a staging ground for operations in Syria, Iraq and Afghanistan. Also, Qatar has been barred from the Saudi-led combination fighting in Yemen, as per CNBC.

"The base gives them a sense of confidence", said Hardin Lang, a senior fellow at the Center for American Progress. The Qatari Embassy in Washington did not immediately respond to a request for comment.

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