Oil prices have already struggled to recover from last week's decline, but news of tensions in the Middle East is fueling a further decline in oil prices.
OPEC members Saudi Arabia and the United Arab Emirates cut ties with Qatar on Monday, June 5. They were joined by Bahrain and Egypt. According to a Saudi official, the move is a response to "gross violations by the authorities in Qatar in recent years." reports AFP.
Oil prices fell last week after the United States withdrew from the Paris climate agreement.
Trump
The severance of diplomatic relations comes 2 weeks after Donald Trump's visit to the region. After the president left the Middle East, the Qatari state news agency published criticism of the Qatari president of Trump's policies against Iran, championing "Islamic power" Iran.
Those statements go against consensus among neighboring countries, almost all of whom are against Iran's nuclear program and the country's influence in the region. Qatar says the publication of the controversial statements is the result of a hack of a news agency.
US supports the Gulf States
US Secretary of State Rex Tillerson expressed his diplomatic support for the Gulf countries in a statement. He argued that it is important that countries 'remain united'.
The price of West Texas Intermediate oil was nearly one percent lower on Monday. The price of Brent oil has fallen by 0,7 percent.
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