Oil Markets Unmoved By Brewing Conflict in the Middle East

The political standoff in the Middle East between Qatar and other powers in the Middle East enters its third week, and the conflict shows no signs of abating.
On June 5, Saudi Arabia, Egypt, the UAE and Bahrain cut diplomatic ties with Qatar and also tried to close off entry to Qatar by land, sea, and air. They argued that Qatar is a major funder of terrorism.
US President Donald Trump backed the move. ‘The nation of Qatar, unfortunately, has historically been a funder of terrorism at a very high level, and in the wake of that conference, nations came together and spoke to me about confronting Qatar over its behavior,’ Trump said on June 9. ‘I decided, along with Secretary of State Rex Tillerson, our great generals, and military people, the time had come to call on Qatar to end its funding — they have to end that funding — and its extremist ideology in terms of funding.’
Of course, there is much more to the spat than Qatar’s terrorism links – the tension between Qatar and Saudi Arabia goes much deeper. Qatar supported the Arab Spring uprisings in 2011, sparking the intense ire of the various monarchies and authoritarians in the region. Qatar has a friendly relationship with Iran, a major rival of Saudi Arabia. There is also just a plain old competition for power in the region. Needless to say, it’s complex.

This post was published at FinancialSense on 06/20/2017.