Qatar’s stock market suffered its worst fall since 2009 on Monday after several Arab nations cut military and diplomatic ties with the country over its stance on Iran and Islamist extremists.
Nonetheless, the tensions could potentially impact on an agreement to cut production in order to support global prices.
A slump in equities wiped more than $9bn off the value of the country’s main stock market hours after Bahrain, Egypt, Saudi Arabia and the UAE declared they would be severing all ties with Qatar.
The Foreign Affairs Ministry of Qatar said it had been the victim of a “campaign of lies” designed to destabilise the region.
Elsewhere oil prices rallied on concerns that the tensions might disrupt supply.
Qatar’s stock market suffered its worst fall since 2009 on Monday after several Arab nations cut military
according to While the diplomatic spat has not affected shipments, it raises the prospect of supply disruptions from the Middle East, including Organization of Petroleum Exporting Countries (Opec) members Saudi Arabia, Iran and Qatar.
Saudi Arabia, Bahrain, the United Arab Emirates and Egypt have said they will suspend air and sea travel to and from Qatar, escalating a crisis that started over its relationship with Iran.
Oil prices rebounded and stocks slumped after a Saudi-led alliance cut diplomatic ties with Qatar and moved to close off access to the Gulf country, raising tensions in the world’s biggest oil-producing region.
The chief worry among them is the Muslim Brotherhood, a Sunni Islamist political group outlawed by both Saudi Arabia and the UAE as it challenges the nations’ hereditary rule.
Oil futures rose as much as 1.6pc in New York, paring the biggest weekly loss in a month.
Saudi Arabia and other GCC countries traditionally account for only about 5 to 10 percent of daily trading on the Qatari stock market, according to exchange data.
Other GCC stock marikets also fell, with Dubai losing 0.8 percent and Saudi Arabia falling 0.2 percent.
The Qatari stock index sank 7.6 percent in the first hour of trade.
(Adds details, analysis)By Celine AswadDUBAI, June 5 Qatar’s stock market plunged on Monday after Saudi Arabia, Egypt, the United Arab Emirates and Bahrain severed ties with Doha, accusing it of supporting terrorism.
Saudi Arabia, the UAE and Bahrain announced the suspension of transport ties with Qatar, and gave Qatari visitors and residents two weeks to leave their borders.
collected by :Dicson Walt