Iran calls on Gulf Arab neighbours to resolve dispute through dialogue

Iran calls on Gulf Arab neighbours to resolve dispute through dialogue

So did an eastern-based government in Libya, which has spurned the UN-backed, internationally recognized government in Tripoli and has little authority within the country.

"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.

While Saudi Arabia's relations with Iran are characterized by hostility, Qatar has sought to preserve more amicable ties with its neighbor across the Persian Gulf.

Saudi Arabia's government says it's cutting ties to protect itself "from the dangers of terrorism and extremism", the Saudi Press Agency reports. Qatar shares a massive offshore gas field with the Islamic Republic.

Vasanth Kumar, who earlier this year stepped down from the Qatar-based Arabian MEP contracting business he cofounded, said that people in Qatar were generally hopeful that the current dispute could be sorted out quickly, but that "contractors in general are a little scared" because of the effect that port closures could have on gaining access to equipment.

Iran saw America pulling the strings.

Trump and other U.S. officials participated in a traditional sword dance during the trip in which he called on Muslim countries to stand united against Islamist extremists and singled out Iran as a key source of funding and support for militant groups.

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Speaking in Sydney, US Secretary of State Rex Tillerson said he did not expect the announcement to have "any significant impact, if any impact at all, on the unified fight against terrorism". It is, however, still unclear if the boycott would affect the United States' military operations in the middle east.

Saudi Arabia, the United Arab Emirates and Bahrain withdrew their ambassadors from Qatar for eight months in 2014 over Doha's alleged support of Islamist groups, but that had minimal market or economic impact because it did not involve a ban on transport links.

"It will ultimately have to be solved at the diplomatic level".

Turkey, which enjoys friendly relations with Qatar and other Gulf countries, offered its help, with Foreign Minister Mevlut Cavusoglu telling reporters: "We will give any kind of support for the situation to be normalised".

"Countries may of course have some issues, but dialogue must continue under every circumstance for problems to be resolved peacefully".

"It is not unlikely that we would witness more negative incidents in the region", in the wake of the deal, he said.

Diplomatic relations between Maldives and Qatar began in 1984.

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Meanwhile, Qatar Airways said it was suspending all flights to Saudi Arabia.

Reflecting doubts over the efficacy of OPEC's ability to tighten the market, Brent futures are still down about nearly 7 percent from their open on May 25, when OPEC announced it would extend its production cut into 2018.

"The measures are unjustified and are based on false and baseless claims", the Qatari foreign ministry said in a statement, referring to the unprecedented steps taken by Saudi Arabia, Bahrain, the United Arab Emirates and Egypt.

Qatar, which will host the 2022 FIFA World Cup and is home to some 10,000 American troops, criticized the move as a "violation of its sovereignty".

Over the years, many rifts have emerged in the council, including border disputes and conflicting foreign policies. "(They) have made a decision to deal with Qatar's alternative approach on the assumption that they will have the (Trump) administration's backing".

Other airlines including Fly Dubai, Emirates, Etihad Airways and Air Arabia have also announced similar moves, while Qatar Airways has announced it is suspending all flights to Saudi Arabia.

A passenger walks in a terminal upon his arrival at Doha's Hamad International Airport, Qatar.

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