Qatar: Rising tension in the Gulf
On 5 June 2017, several Arab nations, including Bahrain, Egypt, Saudi Arabia and the United Arab Emirates (UAE), simultaneously announced that they were severing ties with Qatar, a fellow member of the Gulf Cooperation Council (GCC). Accusing Qatar of supporting and financing 'terrorism and extremism' in the region, the above countries announced that they would halt all land, air and sea traffic with Qatar, expel its diplomats and ask Qatari citizens to leave their territory within 14 days. Oil prices rose initially as markets responded nervously to the worst crisis to involve the GCC since its creation in 1981, but then dropped again. Any escalation in the crisis would likely lead to more sustained increases in oil and gas prices.
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