Qatar boycotted by Saudi Arabia and key allies

Here’s why

Saudi Arabia and key allies have severed ties with Qatar over extremism issues, it emerged this morning.

“(Qatar) embraces multiple terrorist and sectarian groups aimed at disturbing stability in the region, including the Muslim Brotherhood, ISIS (Islamic State) and al-Qaeda, and promotes the message and schemes of these groups through their media constantly,” Saudi state news agency SPA said.

Airline Emirates announced it is suspending flights to and from Doha indefinitely from tomorrow morning, under instruction from the government of the UAE, after several Arab states severed ties with the country.

In a statement, Emirates said “Emirates’ flights to and from Doha today (5 June), will operate as normal. Travellers bound for Doha, who are boarding their flight from airports around the Emirates network today (5 June), will be advised to make alternative arrangements. All customers booked on Emirates’ flights to and from Doha will be provided with alternative options, including full refunds on unused tickets and rebooking to the nearest alternate Emirates destinations.”

The news also led to Brent crude futures prices rising around one percent to over $50 per barrel on concerns about a widening rift in the Arab world.

The move comes as the Organization of the Petroleum Exporting Countries (OPEC), of which Saudi Arabia, the UAE and Qatar are members, recently agreed to extend crude oil production cuts in order to tighten the market and pop up prices.

Henry Croft, research analyst at Accendo Markets, said: “FTSE 100 Index called to open +5pts at 7555, having rallied from shallow rising lows support and overnight lows of 7545 but remaining hindered by falling highs resistance from Friday at 7560. 

“This primes the index for noticeable movement at the open, as its 3-day narrowing pattern reaches a climax. Bulls will be eyeing a sharp break above 7560 to keep 2-week rising low support alive, and a potential return to last week’s all-time highs. Bears, on the other hand, will be looking for 7550 support to give way for a return to 7500.”