Middle East freezes out Qatar: What you need to know

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"It is necessary to return the trust after the breach of the agreements, the road map with guarantees is necessary", Gargash wrote on Twitter late on Monday.

Saudi football club Al-Ahli said just hours after the cut in diplomatic ties that it would end its financial association with Qatar Airways, taking to Twitter to announce "the termination of the sponsorship contract between the club and Qatar Airways".

Arab nations broke ties with Doha after Riyadh accused it of supporting groups, including some backed by Iran, "that aim to destabilise the region".

U.S. officials in multiple agencies stressed their desire to promote a reconciliation between the Saudi-led group and Qatar, a state of 2.5 million people with vast natural gas reserves.

Rising geopolitical tensions in the Middle East should be good for a pop higher in oil prices, right?

Saudi Arabia said it took the decision due to Qatar's "embrace of various terrorist and sectarian groups aimed at destabilising the region" including the Muslim Brotherhood, al-Qaida, Isis and groups supported by Iran in the kingdom's restive eastern province.

Speaking to reporters in Australia, U.S. Secretary of State Rex Tillerson said he did not expect the development to "have any significant impact, if any impact at all, on the unified - the unified fight against terrorism".

It was not immediately clear how the political crisis would affect policy-making at OPEC, of which Saudi Arabia as the world's biggest crude exporter is seen as the de-facto leader.

Complicating matters is that Qatar is home to the U.S.'s Al Udeid Air Base - a key staging ground for strikes against the Islamic State group in Syria.

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Soccer's governing body Federation Internationale de Football Association said it remained in regular contact with Qatar, which will host the 2022 World Cup. Unfortunately for the Doha, Qatar-based airlines, Saudi Arabia along with the Emirates of Abu Dhabi and Dubai happen to be some of its biggest markets.

"There's an acknowledgement that a lot of Qatari behavior is quite worrisome not just to our Gulf neighbors but to the U.S.", said the senior administration official. Qatar "is likely to initially attempt to create the illusion of complying without fully doing so, but this will likely trigger a more stern response", he said.

Qatar, a small peninsular nation of 2.5 million people that has a large US military base, denounced the action as predicated on lies about it supporting militants.

Qatar has consistently denied any support for extremists or Iran and did so again after yesterday's move by its neighbours.

Gulf countries previously recalled their ambassadors from Qatar in 2014, ostensibly over its support for the Muslim Brotherhood, but yesterday's moves go much further. On May 27, Qatar's ruling emir, Tamim bin Hamad Al Thani, called Iranian President Hasan Rouhani to congratulate him on his re-election.

"The closer we get to 2022, the more Qatar becomes exposed".

Saudi Arabia and its Gulf allies may have felt emboldened by Trump's visit, which saw the new president clearly align United States interests with Riyadh and lash out at Iran.

"We certainly would encourage the parties to sit down together and address these differences", Mr. Tillerson said. It also exerts regional influence by sponsoring the Al Jazeera television network, which has angered Saudi Arabia some allies with its criticism of autocratic governments - except Qatar's - and sympathy for the Muslim Brotherhood, especially in Egypt.

"The diplomatic situation will probably take some time - I don't know how long - but it will be resolved", Mr. Mattis said.

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