Qatari stocks get slammed after 4 Arab nations cut ties
Capital Economics
Qatar's main equity benchmark closed down by more than 7% on Monday. The country's 2026 international bond saw yields climb by over 20 basis points.
Oil and natural gas prices were lower, as well. Brent crude oil, the international benchmark, was down by 0.9% at $49.48 per barrel, while natural gas was down by 1.2% at $2.963 as 8:44 a.m. ET.
"[B]ut there are good reasons to think that the impact on these economics and global energy markets will be limited," Jason Tuvey, Middle East economist at Capital Economics, said in a note.
Qatar specializes in natural gas, and is only a minor oil producer, so the impact on oil markets is likely to be limited, he explained. Moreover, Qatar's trade ties with its neighbors are "relatively small," and most of its oil and gas exports go to Asia.
Capital Economics
Saudi Arabia, the United Arab Emirates, Bahrain, and Egypt announced earlier they were severing diplomatic ties with Qatar, and were closing all land, sea, and aviation ports.
Last month, Qatar's state-run news agency published "explosive" remarks attributed to Emir Sheikh Tamim bin Hamad Al-Thani, although Doha denied all the comments and claims it was the victim of a "shameful cybercrime."
The stories quoted the Emir as "questioning US hostility towards Iran, speaking of 'tensions' between Doha and Washington, commenting on Hamas, and speculating that President Donald Trump might not remain in power for long," according to the AFP.
The alleged comments were published after Trump's trip to the region in May.
Get the latest Oil WTI price here.
- I quit McKinsey after 1.5 years. I was making over $200k but my mental health was shattered.
- Some Tesla factory workers realized they were laid off when security scanned their badges and sent them back on shuttles, sources say
- I tutor the children of some of Dubai's richest people. One of them paid me $3,000 to do his homework.
- Top 10 Must-visit places in Kashmir in 2024
- The Psychology of Impulse Buying
- Indo-Gangetic Plains, home to half the Indian population, to soon become hotspot of extreme climate events: study
- 7 Vegetables you shouldn’t peel before eating to get the most nutrients
- Gut check: 10 High-fiber foods to add to your diet to support digestive balance