"We need the world to condemn the aggressors".
DUBAI/DOHA - US President Donald Trump offered on Wednesday to help resolve a worsening diplomatic crisis between Qatar and other Arab powers as the United Arab Emirates invoked the possibility of an economic embargo on Doha over its alleged support of terrorism. He said normal life in Qatar is "not affected" by the blockage, insisting the tiny country maintains sufficient access to other air and sea routes to secure food for its people.
Doha, Qatar today dismissed as "baseless" a terrorism blacklist published by Saudi Arabia and its allies which linked individuals and organisations in Doha to support for Islamist militant groups.
Trump initially took sides with the Saudi-led group before apparently being nudged into a more even-handed approach when US defence officials renewed praise of Doha.
In a phone call with Qatar's ruling emir, Sheikh Tamin bin Hamad Al Thani, Trump said he wanted to help Qatar and its Arab neighbors resolve the row that has upended any sense of Gulf unity, suggesting a possible White House summit among leaders.
Qatar's ministry of defence, meanwhile, played down news reports that its miltary forces were put on high alert on the country's southern border with Saudi Arabia.
Nevertheless, as S&P noted, Qatar's banking system has in recent years become more dependent on loans and deposits from Gulf and global banks, and it could face a major outflow if that money is withdrawn because of diplomatic tensions.
One veteran Middle East policy hand who works closely with the White House told the Free Beacon that Trump's recent trip to the Middle East likely laid the foundation for Saudi Arabia and other Gulf nations to take a forceful stand against Qatar's terror financing.
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Kuwait's emir is working to mediate the Gulf crisis around Qatar, which is home to a major U.S. military base and the host of the 2022 Fifa World Cup.
"We have not asked for mediation, we believe this issue can be dealt with among the states of the Gulf Cooperation Council", he told a news conference with his German counterpart during a visit to Berlin that was broadcast on Saudi state television.
With supply chains disrupted and anxiety mounting about deepening economic turbulence, banks and firms in Gulf Arab states were trying to keep business links to Qatar open and avoid a costly firesale of assets.
"Qatar needs to decide: Do you want to be in the pocket of Turkey, Iran and Islamic extremists?"
"The bottom line is that today the Qatari government has a decision to make".
The West African country of Mauritania, a member of the Arab League, severed ties with Qatar on Tuesday over allegations it "supports terrorists", the state news agency reported, and OPEC member Gabon also condemned the small Gulf Arab state. It provides a haven to anti-Western groups such as the Afghan Taliban, Palestinian Hamas and Algeria's Islamic Salvation Front. Qatar's emir has said such a view is a big mistake. He said he had not been officially informed of any United States investigation into the alleged hacking of Qatar's news agency, a development which is part of the dispute. Turkey, like Kuwait, has offered to mediate.
"We expect that economic growth will slow, not just through reduced regional trade, but as corporate profitability is damaged because regional demand is cut off, investment is hampered, and investment confidence wanes", S&P said when downgrading Qatar's sovereign credit rating on Wednesday.
"The request for political protection from two non-Arab countries and military protection from one of them could be a new tragic and comic chapter", UAE Minister of State for Foreign Affairs, Anwar Gargash, wrote on Twitter.



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