"They said they would take a hard line on funding extremism, and all reference was pointing to Qatar", said Trump.
The conflicting signals suggested Tillerson was playing "good cop" to Trump's tougher-talking "bad cop".
The Pentagon said the blockade was hindering United States ability to plan for long-term operations in the region. This is partly due to the significance of the al-Udeid air base, from which almost all coalition airstrikes against Islamic State are being conducted. We can't prosper economically, socially in the midst of such a region with what's happening around us.
"The previous emir is a big supporter of this whole extremist agenda, so we do have an issue", the official said.
The sanctions list further tightens the screws on Qatar, home to a major USA military base and the host of the 2022 FIFA World Cup, and shows the crisis only escalating despite Kuwaiti efforts to mediate an end to the rift.
A picture on Facebook showed a supermarket displaying food from Turkey including milk, eggs and chicken.
The designations point to the fact that despite repeated calls from the countries of the Gulf Cooperation Council (GCC) and the global community, Qatar remains a permissive jurisdiction for terrorism financing.
He said Qatar as an independent nation also had the right to support groups like the Muslim Brotherhood, despite its neighbors outlawing the Sunni Islamist group.
"We lead the region in attacking the roots of terrorism - by giving young people hope through jobs, replacing weapons with pens by educating hundreds of thousands of Syrian refugees and funding local community programs globally to challenge extremist agendas", it said. "Others must also continue to eliminate factions of support for violent organizations within their own borders".
Earlier this week, UAE authorities announced that social media posts sympathetic to Qatar are punishable by three to 15 years in jail, or a fine of at least 500,000 AED (US$135,000). Oil prices have continued their downward trend this week as Gulf nations accuse each of other of sponsoring terrorists.
UK leader May seen fighting for survival after election failure
May's ruling Conservative Party lost seats to Labor and the Liberal Democrats and ended with 318 seats. Leading Brexit campaigner Nigel Farage said the result had put the whole future of Brexit at risk.
Qatari Foreign Minister Mohammed bin Abdulrahman al-Thani told reporters in Doha that his country "was not ready to surrender, and will never be ready to surrender" the independence of its foreign policy.
"In the last few days, I've spoken to many leaders in the region, and as I said to all of them, we know you are stronger together", he said. The State Department had said the US learned only at the last minute about the Arab nations' plan to cut ties.
But despite his defiance, the foreign minister was adamant the crisis would not evolve into a military conflict.
"We are convinced that now is the hour of diplomacy and we must talk to each other; along with our American colleagues but above all our colleagues in the region, we must try to find solutions, especially lifting the sea and air blockades".
Egypt and Bahrain increases pressure on Qatar over allegations that it interferes in the affairs of its neighbours by supporting and financing Islamist groups.
A USA official, briefing reporters on condition of anonymity, declined to say whether the US backs removing the emir of Qatar. But their demands have little to do with the issue of terrorism, but created to weaken Qatar's influence in the region. The decision has since been adopted by several other Muslim nations.
Qatar is home to 2.7 million people but only about 300,000 citizens. Projects include soccer stadiums for the 2022 World Cup.
A senior UAE official accused Qatar of escalating the row by seeking help from Turkey and Iran.
Qatar's 2022 FIFA World Cup is also at risk, as a multitude of critical construction projects will also face supply shortages. The riyal currency has tumbled and the cost of insuring Qatari debt against default has risen.
Secretary of State Rex Tillerson is calling on Saudi Arabia, Egypt, the United Arab Emirates and Bahrain to immediately ease their blockade on Qatar. Qatar has denied all allegations. Those on the list, including the former interior minister, could not be reached for comment. Earlier in the week, Mr. Trump took to Twitter to take credit for the Saudi-led move to punish Qatar, saying it could be the start of the end of terrorism in the Middle East. Far from being a force of moderation, Ahrar al-Sham has fought alongside Jabhat al-Nusra, also known as Al Qaeda in Syria.
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