Saudi-led Bloc Meets to Discuss Next Step in Qatar Crisis

by Dramelin 12:30 AM 0 comments

Foreign ministers from Saudi Arabia, United Arab Emirates, Bahrain and Egypt hold talks on Sunday to discuss the crisis with Qatar, with little sign the eight-week standoff is nearing its end.
The meeting in Manama, Bahrain’s capital, is part of the coalition’s efforts to coordinate its response to Qatar’s “support for terrorism,” Bahrain’s Foreign Ministry said in a statement.
On Sunday, the Saudi-led bloc will study imposing more sanctions, including measures that would gradually harm the Qatari economy, Saudi-owned Al-Hayat newspaper reported.
The four countries severed their diplomatic and transport link with Qatar on June 5, accusing Doha of backing extremist groups in the region.
Qatar denies the charges and says the boycott is an attempt by Saudi Arabia to force smaller nations into submission.
Qatar’s isolation has forced it to open new, more expensive, trade routes to import food, building materials and equipment.
Food prices in Qatar rose the most since 2015 in June, while the the crisis triggered a rating downgrade for the nation’s sovereign debt by S&P Global Ratings.
Central bank data released last week showed that foreign deposits at Qatar’s banks fell the most in almost two years last month as customers withdrew funds, pressuring liquidity available locally for businesses and the government.
Efforts to resolve the crisis have reached an impasse, a Gulf official with direct knowledge of the matter said last week, amid signs the four-nation bloc wanted to extract more concessions from the Gulf nation.
Secretary of State Rex Tillerson visited the region this month but failed to secure a breakthrough.
“The dispute is at a standstill,” State Department spokeswoman Heather Nauert told reporters in Washington Thursday.
The countries at the heart of the crisis are all U.
Saudi Arabia has strong counter-terrorism ties with the U.
and is a top customer for American weapons.
Qatar hosts the regional headquarters for U.
Central Command, which includes an air base the Pentagon depends on to target Islamic State.
— With assistance by Ahmed Feteha.