Turkey’s Erdogan says Arab demands on Qatar unlawful

Turkey's President Tayyip Erdogan greets his supporters as he leaves a mosque after the Eid al-Fitr prayers in Istanbul, Turkey, June 25, 2017. REUTERS/Murad Sezer

By Mehmet Caliskan

ISTANBUL (Reuters) – President Tayyip Erdogan on Sunday dismissed calls for Turkey to close a military base in Qatar and said a wider list of demands issued by four Arab states was an unlawful intervention against the Gulf state’s sovereignty.

In his strongest statement of support for Qatar in the nearly three-week-old crisis centered on the Gulf state, Erdogan said the call to withdraw Turkish forces was disrespectful and that Doha – which described the demands as unreasonable – was taking the right approach.

Saudi Arabia, the United Arab Emirates, Egypt and Bahrain imposed a boycott on June 5 on Qatar and issued 13 demands including closing Al Jazeera television, curbing relations with Iran, shutting the Turkish base and paying reparations.

Doha said it was reviewing the list, but said it was not reasonable or actionable.

“We approve and appreciate the attitude of Qatar against the list of 13 demands,” Erdogan, speaking outside a mosque in Istanbul, said. “…This approach of 13 demands is against international law because you cannot attack or intervene in the sovereignty of a country.”

Bahrain’s foreign minister said on Sunday that outside interference would not solve the problem.

“It is in the interest of these powers to respect the existing regional order which is capable of solving any issue that may arise,” Sheikh Khalid bin Ahmed al-Khalifa said in a message on Twitter, without naming Turkey.

The 13 demands are apparently aimed at dismantling Qatar’s interventionist foreign policy which has incensed conservative Arab peers over its alleged support for Islamists they regard as threats to their dynastic rule.

Qatar along with Turkey, whose ruling AK Party has its roots in Islamist politics, backed a Muslim Brotherhood government in Egypt before it was overthrown in 2013. The Arab states have demanded Qatar cut any links to the Brotherhood and other groups they deem to be terrorist, ideological or sectarian.

“NO PULLOUT”

Turkey, the most powerful regional country to stand by Qatar, has sent 100 cargo planes with supplies since its neighbors cut air and sea links. It has also rushed through legislation to send more troops to its base in Doha.

Two contingents of Turkish troops with columns of armored vehicles have arrived since the crisis erupted on June 5, and Defence Minister Fikri Isik said on Friday that further reinforcements would be beneficial.

“The strengthening of the Turkish base would be a positive step in terms of the Gulf’s security,” he said. “Re-evaluating the base agreement with Qatar is not on our agenda.”

Hurriyet newspaper said last week a joint exercise by Turkish and Qatari forces was expected following the Islamic Eid al-Fitr holiday which started on Sunday, and the number of Turkish soldiers sent to the Gulf state could eventually reach 1,000. An air force contingent was also envisaged, it said.

Erdogan said Turkey had also offered to establish a military base in Saudi Arabia, but never received a clear answer.

“If Saudi Arabia wants us to have base there, a step towards this also can be taken,” he told reporters. “I made this offer to the king himself and they said they will consider this.”

“They did not come back to us since that day and even though they still didn’t come back to us on this, asking Turkey to pull back its troops (from Qatar) is disrespectful against Turkey.”

Speaking outside the Istanbul mosque after prayers marking the Muslim Eid al-Fitr holiday, Erdogan said he would continue his planned program despite feeling briefly unwell.

“I had a little condition about my blood pressure, related to my diabetes,” he said.

(Additional reporting by Mohammed el Sherif in Cairo and Sami Aboudi in Dubai,; Writing by Dominic Evans; Editing by Robert Birsel, Jane Merriman and Susan Thomas)

Arab states demand Qatar closes Jazeera, cuts back ties to Iran

The Al Jazeera Media Network logo is seen on its headquarters building in Doha, Qatar June 8, 2017. REUTERS/Naseem Zeitoon - RTX39N4R

By William Maclean and Rania El Gamal

DUBAI (Reuters) – Four Arab states boycotting Qatar over alleged support for terrorism have sent Doha a list of 13 demands including closing Al Jazeera television and reducing ties to their regional adversary Iran, an official of one of the four countries said.

The demands aimed at ending the worst Gulf Arab crisis in years appear designed to quash a two decade-old foreign policy in which Qatar has punched well above its weight, striding the stage as a peace broker, often in conflicts in Muslim lands.

Doha’s independent-minded approach, including a dovish line on Iran and support for Islamist groups, in particular the Muslim Brotherhood, has incensed some of its neighbors who see political Islamism as a threat to their dynastic rule.

The list, compiled by Saudi Arabia, the United Arab Emirates (UAE), Egypt and Bahrain, which cut economic, diplomatic and travel ties to Doha on June 5, also demands the closing of a Turkish military base in Qatar, the official told Reuters.

Turkey’s Defense Minister Fikri Isik rejected the demand, saying any call for the base to be shut would represent interference in Ankara’s relations with Doha. He suggested instead that Turkey might bolster its presence.

“Strengthening the Turkish base would be a positive step in terms of the Gulf’s security,” he said. “Re-evaluating the base agreement with Qatar is not on our agenda.”

Qatar must also announce it is severing ties with terrorist, ideological and sectarian organizations including the Muslim Brotherhood, Islamic State, al Qaeda, Hezbollah, and Jabhat Fateh al Sham, formerly al Qaeda’s branch in Syria, the Arab official said, and surrender all designated terrorists on its territory.

QATAR WON’T NEGOTIATE UNDER BOYCOTT

The four Arab countries accuse Qatar of funding terrorism, fomenting regional instability and cozying up to revolutionary theocracy Iran. Qatar has denied the accusations.

Qatari officials did not reply immediately to requests for comment. But on Monday, Foreign Minister Sheikh Mohammed bin Abdulrahman al-Thani said Qatar would not negotiate with the four states unless they lifted their measures against Doha.

The countries give Doha 10 days to comply, failing which the list becomes “void”, the official said without elaborating, suggesting the offer to end the dispute in return for the 13 steps would no longer be on the table.

“The demands are so aggressive that it makes it close to impossible to currently see a resolution of that conflict,” said Olivier Jakob, a strategist at Switzerland-based oil consultancy Petromatrix.

Several Qataris who spoke to Reuters described the demands as unreasonable. “Imagine another country demanding that CNN be closed,” said 40-year-old Haseeb Mansour, who works for telecom operator Ooredoo.

Abdullah al-Muhanadi, a retired public sector shopping for groceries in Doha on Friday morning, said the boycott must be lifted before negotiations to resolve the dispute could start.

“There’s a lot on the list that is simply not true or unreasonable, so how can we comply?” he said. “There are no IRGC (Iranian Revolutionary Guard Corps) elements in Qatar and the agreement with Turkey is a long-standing diplomatic agreement so we cannot ask them to leave.”

The demands, handed to Qatar by mediator Kuwait also require that Qatar stop interfering in the four countries’ domestic and foreign affairs and stop a practice of giving Qatari nationality to citizens of the four countries, said the official, who spoke on condition of anonymity.

Qatar must pay reparations to these countries for any damage or costs incurred over the past few years because of Qatari policies, he added. Any resulting agreement to comply with the demands will be monitored, with monthly reports in the first year, then every three months the next year, then annually for 10 years, the official said without elaborating.

U.S. President Donald Trump has taken a tough stance on Qatar, accusing it of being a “high level” sponsor of terrorism, but he has also offered help to the parties in the dispute to resolve their differences.

Turkey has backed Qatar during the three-week-old crisis. It sent its first ship carrying food aid to Qatar and dispatched a small contingent of soldiers and armored vehicles there on Thursday, while President Tayyip Erdogan spoke with Saudi Arabia’s leaders on calming tension in the region.

(Additional reporting by Tom Finn and Tom Arnold in Doha, and Daren Butler in Istanbul; Editing by Rania El Gamal, Paul Tait and Richard Balmforth)

Qatar rift risks raising cost for Gulf debt issuers and slowing Saudi reforms

FILE PHOTO: Cars drive past the King Abdullah Financial District, north of Riyadh, Saudi Arabia, March 1, 2017. REUTERS/Faisal Al Nasser/File Photo

By Saeed Azhar, Davide Barbuscia and Katie Paul

DUBAI/RIYADH (Reuters) – Qatar’s rift with its Arab neighbors is threatening to puncture investor appetite for the Gulf region as a whole, translating into potentially higher debt costs for governments and possibly slowing the pace of Saudi Arabia’s economic reforms.

Saudi, United Arab Emirates, Bahrain and Egypt broke relations and transport ties with Qatar on June 5, alleging it finances terrorism, something Doha vehemently denies.

The move has thrown the region — which has been relatively stable, if troubled by Sunni and Shi’ite Muslim rivalry — into diplomatic turmoil that is now putting off investors.

“We were used to a relatively peaceful region and now the landscape has changed,” said Brigitte Le Bris, head of emerging debt and currencies at Paris-based Natixis Asset Management, which manages about 350 billion euros ($392 billion) in assets.

“We are not yet ready to increase our exposure to the region. We need to know whether this crisis is isolated to Qatar or it can spread and affect other countries or the crisis can worsen.”

One obvious area is sovereign debt, where the crisis has the potential of raising borrowing costs.

Following the sanctions, rating agency Standard & Poor’s downgraded Qatar while Fitch put it on its watchlist for a potential downgrade.

To date, foreign investors still appear to be comfortable holding Qatar paper due to the size of the country’s reserves and assets held by its sovereign wealth fund, Qatar Investment Authority.

Yields on Qatar’s sovereign dollar bonds maturing in 2026 spiked over 40 basis points after the sanctions were announced on June 5 but have now recovered nearly 20 bps.

Other Gulf Cooperation Council countries’ sovereign bonds saw some weakness in the immediate aftermath of the diplomatic crisis, but again have largely gone back to their pre-crisis levels.

How long this lasts, however, may depend on how long the crisis goes on, which may be “for years” according to one UAE minister..

The market’s take, however, is that the diplomatic crisis will be resolved via political mediation, said Max Wolman, senior portfolio manager at Aberdeen Asset Management in London.

“But if the likes of Bahrain, Oman or even Saudi Arabia were to issue these days, I think there would be a slight risk premium of 10 to 15 basis points in the primary to the secondary market because of current political uncertainty,” he said.

SAUDI REFORMS

Another risk could be to Saudi Arabia’s economic reforms, many of which depend on investor cash flowing in.

“Investors may become concerned about Saudi over-extending itself, as the war in Yemen continues and domestically reforms have adversely impacted consumer sentiment,” Asha Mehta, portfolio manager at Acadian Asset Management.

A senior banker, who has done extensive investment banking work in the Middle East, pointed to the high-profile listing of oil company Aramco as a potential issue.

“If the situation continues like this and they planned their IPO, they would be bombarded with questions on this (political upheaval),” he told Reuters, asking not to be named.

Even though the Aramco IPO is not expected until 2018, Saudi Arabia was preparing the sale of government stakes in airports, healthcare and educational firms, aiming to raise $200 billion.

The privatization is part of the reforms to reduce Saudi Arabia’s dependence on oil, after its price plunge hurt the kingdom’s economy and stretched its finances.

Bank of America Merrill Lynch in a recent note said geopolitics may delay the reforms, although not derail them.

Saudi’s reform process could get some impetus, however, from the announcement on Wednesday that Mohammed bin Salman will become the crown prince, replacing his cousin in a sudden announcement that confirms Saudi Arabia King Salman’s 31-year-old son as next ruler of the kingdom.

MBS, as he is known, was behind the sweeping economic reforms aimed at ending the kingdom’s “addiction” to oil, part of his campaign.

Brent was unchanged at $46.02 barrel at 0651 GMT on Wednesday at multi-month lows after falling nearly 2 percent in the previous session to its lowest settlement since November as investors discounted evidence of strong compliance to a deal to cut a global output.

(additional reporting by Marc Jones in London, and Tom Arnold in Dubai Editing by Jeremy Gaunt)

Gulf crisis seen widening split in Syria rebellion

FILE PHOTO: A rebel fighter from the Ahrar al-Sham Islamic Movement reacts as they fire grad rockets from Idlib countryside, towards forces loyal to Syria's President Bashar al-Assad stationed at Jureen town in al-Ghab plain in the Hama countryside, Syria, April 25, 2015. REUTERS/Mohamad Bayoush/File Photo

By Tom Perry and Suleiman Al-Khalidi

BEIRUT/AMMAN (Reuters) – Confrontation between Qatar and Saudi Arabia is creating unease among Syrian rebels who expect the crisis between two of their biggest state backers to deepen divisions in the opposition to President Bashar al-Assad.

Together with Turkey and the United States, Qatar and Saudi Arabia have been major sponsors of the insurgency, arming an array of groups that have been fighting to topple the Iran-backed president. The Gulf support has however been far from harmonious, fuelling splits that have set back the revolt.

Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic and transport ties with Qatar a week ago, accusing it of fomenting regional unrest, supporting terrorism and getting too close to Iran, all of which Doha denies.

It is the biggest rift among Gulf Arab states in years.

“God forbid if this crisis is not contained I predict … the situation in Syria will become tragic because the factions that are supported by (different) countries will be forced to take hostile positions towards each other,” said Mustafa Sejari of the Liwa al Mutasem rebel group in northern Syria.

“We urge our brothers in Saudi Arabia and Qatar not to burden the Syrian people more than they can bear.”

The Syrian rebellion can ill afford more internal conflict.

The opposition has been losing ground to Damascus ever since the Russian military deployed to Syria in support of Assad’s war effort in 2015. Assad now appears militarily unassailable, though rebels still have notable footholds near Damascus, in the northwest, and the southwest.

In the fractured map of the Syrian insurgency, Qatari aid has gone to groups that are often Islamist in ideology and seen as close to the Muslim Brotherhood – a movement that is anathema to Saudi Arabia, the United Arab Emirates and Egypt.

Turkey, which has swung firmly behind Qatar in the Gulf crisis, is thought to have backed the same groups as Qatar in northern Syria, including the powerful conservative Islamist faction Ahrar al-Sham.

Qatar is also widely believed to have ties to al Qaeda-linked jihadists of the group once known as the Nusra Front, which has rebranded since formally parting ways with al Qaeda and is now part of the Tahrir al-Sham Islamist alliance.

While Qatar has officially denied Nusra ties, it has mediated the release of hostages held by the group including Americans, Greek Orthodox nuns and members of the Lebanese security forces.

Saudi aid has meanwhile been seen as targeted more closely at groups backed through programs run by the U.S. Central Intelligence Agency – programs in which Qatar has also participated even as it has backed groups outside that channel.

The United Arab Emirates has also played an influential role in that program, together with staunch U.S. ally Jordan. These powers wield more influence in southern Syria than the north.

NORTH-SOUTH SPLIT

“It will increase the split between north and south, as the north is mainly funded by Qatar and Turkey, and the south is supported by Jordan and the (U.S.-led) coalition,” said an opposition source familiar with foreign support to the rebels.

A second opposition source, a senior rebel official, said the Gulf crisis “will certainly affect us, people are known to be with Saudi, or Qatar, or Turkey. The split is clear.”

Adding to rebel concerns, the crisis has also nudged Qatar closer to Iran, which has sent planes loaded with food to Doha. “Any rapprochement between Qatar and Iran, or any other state and Iran, is very concerning for us,” the rebel official said.

A senior Turkish official said it was very important that the Qatar crisis did not take on “further dimensions”.

“These developments will have certain effects on the developments in Syria, its effects will be seen on the field. The elements which Qatar supports may slightly weaken on the field,” the official said.

Opposition sources fear the Gulf crisis could spark new bouts of conflict, particularly in the Eastern Ghouta area near Damascus where the Saudi-backed Jaish al-Islam has been fighting the Qatari-backed Failaq al-Rahman intermittently for more than a year. That quarrel has helped government forces regain parts of the area.

The four Arab states that have turned against Qatar last week issued a list of dozens of people named as terrorists with links to Qatar, including prominent Islamist insurgent Sheikh Abdullah al-Muhaysini, a Saudi national based in Syria known for mobilizing support for jihadist groups.

The U.S. Treasury last year blacklisted him for acting on behalf of and supporting the Nusra Front, saying he had raised millions of dollars for the group.

(Additional reporting by Orhan Coskun in Turkey; writing by Tom Perry; editing by Peter Graff)

Turkish president says Qatar isolation violates Islamic values

Turkish President Tayyip Erdogan addresses members of parliament from his ruling AK Party (AKP) during a meeting at the Turkish parliament in Ankara, Turkey, June 13, 2017. Kayhan Ozer/Presidential Palace/Handout via REUTERS

By Ercan Gurses and Aziz El Yaakoubi

ANKARA/DUBAI (Reuters) – Turkish President Tayyip Erdogan denounced the isolation of Qatar by neighboring states as a violation of Islamic values and akin to a “death penalty” imposed on Doha in a crisis that has reverberated across the Middle East and beyond.

Erdogan’s comments marked the strongest intervention yet by a powerful regional ally of Doha eight days after Saudi Arabia, the United Arab Emirates (UAE), Bahrain and Egypt cut ties with Qatar and imposed stringent economic sanctions on it.

Qatar denies their accusations that it supports Islamist militants and Shi’ite Iran, arch regional foe of the Sunni Gulf Arab monarchies.

“A very grave mistake is being made in Qatar, isolating a nation in all areas is inhumane and against Islamic values. It’s as if a death penalty decision has been taken for Qatar,” Erdogan told members of his ruling AK Party in Ankara.

“Qatar has shown the most decisive stance against the terrorist organization Islamic State alongside Turkey. Victimizing Qatar through smear campaigns serves no purpose.”

The measures against Qatar, a small oil and gas exporter with a population of 2.7 million people, have disrupted imports of food and other materials and caused some foreign banks to scale back business.

Qatar, which imported 80 percent of its food from bigger Gulf Arab neighbors before the diplomatic shutdown, has been talking to Iran and Turkey to secure food and water.

The world’s second largest helium producer, Qatar has also shut its two helium production plants because of the economic boycott, industry sources told Reuters on Tuesday.

Turkey has maintained good relations with Qatar as well as several of its Gulf Arab neighbors. Turkey and Qatar have both provided support for the Muslim Brotherhood in Egypt and backed rebels fighting to overthrow Syrian President Bashar al-Assad.

Iraqi Prime Minister Haider al-Abadi also criticized the measures imposed on Qatar, saying in Baghdad on Tuesday they were hurting the emirate’s people, not its rulers.

SAUDI FOOD SUPPLIES?

Gulf Arab states have issued no public demands to Qatar, but a list that has been circulating includes severing diplomatic ties with Iran, expulsion of all members of the Palestinian Hamas group and the Muslim Brotherhood, the freezing of all bank accounts of Hamas members, ending support for “terrorist organizations” and ending interference in Egyptian affairs.

Some analysts say demands could also include closing down satellite channel Al Jazeera, or changing its editorial policy.

Saudi Arabia’s foreign minister struck a slightly softer line in comments to reporters during a joint news conference in Washington with U.S. Secretary of State Rex Tillerson, saying Riyadh was ready to send food and medical supplies to Qatar.

The minister, Adel al-Jubeir, defended the Arab powers’ move against Qatar as a boycott, not a blockade, adding: “We have allowed the movement of families between the two countries to happen so that we don’t divide families.”

However, the UAE envoy to Washington, Yousef al Otaiba, reiterated the accusations that Qatar was supporting terrorism.

“Doha has become a financial, media and ideological hub for extremism. Then it must take decisive action to deal once and for all with its extremist problem,” he wrote in an opinion piece for the Wall Street Journal.

There has been no breakthrough in Kuwaiti efforts to mediate in the crisis, but a U.S. official in the region said Kuwait was continuing with what is seen as a “slow, painstaking, deliberate” process focused inside the GCC.

“The parties are still defining what it is they want out of this confrontation … It’s difficult to conduct negotiations if you don’t really know what everybody wants.”

Qatari Foreign Minister Sheikh Abdulrahman al-Thani said on Monday Doha “still had no clue” why Arab states had cut ties with his country. He denied Doha supported groups like the Muslim Brotherhood that its neighbors oppose, or had warm ties with their enemy Iran.

INTERNATIONAL DIPLOMACY

Turkish Foreign Minister Mevlut Cavusoglu said Erdogan would discuss the Gulf rift in a telephone call with U.S. President Donald Trump in coming days, but gave no specific time.

Turkey last week approved plans to deploy more troops to a military base it has established in Qatar under a 2014 agreement with the Gulf Arab state. The move was seen as support by regional power and NATO member Turkey to Doha.

The Chairman of the U.S. Joint Chiefs of Staff, Joseph Dunford, told a Senate hearing that the rift between Qatar and its neighbors was not affecting U.S. military operations.

Al Udeid Air Base in Qatar is home to more than 11,000 U.S. and coalition forces and an important base for the fight against Islamic State militants in the region.

In Moscow, the Kremlin said President Vladimir Putin and Saudi Arabia’s King Salman discussed the Qatar crisis in a phone call on Tuesday. The Kremlin said that the row was not helping to unite efforts to try to find a Syria settlement or fight terrorism.

Morocco has also waded into the crisis, announcing it was sending plane-loads of food supplies to Doha as part of its religious duty during the holy Muslim month of Ramadan.

So far, the measures against Qatar do not seem to have caused serious shortages of supplies in shops.

Some people have even joked about being “blockaded” inside the world’s richest country: a Twitter page called “Doha under siege” pokes fun at the prospect of readying “escape yachts”, stocking up on caviar and trading Rolex watches for espresso.

But an economic downturn could have more dire consequences for the vast majority of Qatar’s residents, who are not citizens but foreign workers.

Migrant laborers make up 90 percent of Qatar’s population, mostly unskilled and dependent on construction projects such as building stadiums for the 2022 soccer World Cup.

(Reporting by Ercan Gurses and Ece Toksaba in Ankara, additional reporting by Aziz El Yaakoubi and Sylvia Westall in Dubai, and Maria Kiselyova in Moscow, Writing by Sami Aboudi and Gareth Jones; editing by Ralph Boulton)

U.S., Turkey discuss Qatar row, Syria on phone call: sources

FILE PHOTO: A view shows buildings in Doha, Qatar, June 9, 2017. REUTERS/Naseem Zeitoon

ANKARA (Reuters) – U.S. Secretary of State Rex Tillerson and Turkish counterpart Mevlut Cavusoglu discussed developments in Syria and in the row between Qatar and its fellow Arab states on a phone call late on Saturday, Turkish foreign ministry sources said.

The call, held at Tillerson’s request, came after Tillerson on Friday urged Saudi Arabia and other Gulf states to ease their blockade of Qatar, saying it was causing unintended humanitarian consequences and affecting the U.S.-led fight against Islamic State.

No further details of the call were immediately available.

Referring to Tillerson’s comments on the blockade, Turkish President Tayyip Erdogan said in a speech at a Ramadan fast-breaking dinner in Istanbul on Friday: “I say it should be lifted completely”.

Saudi Arabia, the United Arab Emirates (UAE), Bahrain and Egypt severed relations with Qatar on Monday, accusing it of supporting Islamist militants and their adversary Iran – allegations Qatar says are baseless. Several countries followed suit.

Erdogan vowed to keep supporting Qatar after his rapid approval of legislation on deploying Turkish troops there. On Saturday, he told Bahrain’s foreign minister that the dispute should be resolved by the end of the holy month of Ramadan.

Erdogan on Thursday also approved an accord between Turkey and Qatar on military training cooperation. Both bills were drawn up before the dispute between Qatar and others erupted. Turkey has also pledged to provide food and water supplies to Qatar.

Turkey has maintained good relations with Qatar as well as several of its Gulf Arab neighbors. Turkey and Qatar have both provided support for the Muslim Brotherhood in Egypt and backed rebels fighting to overthrow Syrian President Bashar al-Assad.

Turkey and fellow NATO member the United States have also been at loggerheads regarding U.S. support the Syrian Kurdish YPG militia in the fight against Islamic State in Syria. Turkey views the YPG as an extension of the Kurdistan Workers Party (PKK), which has waged a three-decade-long insurgency on its soil.

The United States said last week it had started supplying arms to the YPG for an assault on the Syrian town of Raqqa, deepening Turkey’s anger. The YPG’s role in the Raqqa campaign has strained ties between the United States and Turkey, which fears growing Kurdish ascendancy along its border.

(Reporting by Tulay Karadeniz; writing by Tuvan Gumrukcu; editing by Jason Neely)

Iran says Saudi supports militants on its turf after attacks

Iran's Foreign Minister Mohammad Javad Zarif smiles during the opening of the Oslo Forum at Losby Gods outside Oslo, Norway June 13, 2017. NTB Scanpix/Hakon Mosvold Larsen via REUTERS

OSLO (Reuters) – Iranian Foreign Minister Mohammad Javad Zarif on Tuesday said Saudi Arabia was supporting militants inside Iran, days after hardline Sunni group Islamic State claimed attacks in Tehran.

Relations between the two neighbors are at their most tense in years. Last week Riyadh, along with other Arab governments, severed ties with Qatar, citing its support of Iran as one of the main reasons for the move.

Two days later, the suicide bombings and shootings in Tehran killed 17 people. Iran repeated accusations that Saudi Arabia funds Islamic militants including Islamic State. Riyadh has denied involvement in the attacks.

“We have intelligence that Saudi Arabia is actively engaged in promoting terrorist groups on the eastern side of Iran, in Baluchistan,” Zarif told a news conference held on the sidelines of a conference on peace mediation in Oslo.

Baluchistan province is home to a Sunni population who form a minority in majority Shi’ite Iran.

Iran and Saudi Arabia accuse each other of subverting regional security and support opposite sides in conflicts including those in Syria, Yemen and Iraq.

“On the Western side, the same type of activity is being undertaken, again abusing the diplomatic hospitality of our other neighbor,” he said, without elaborating.

Iran also accuses the United States for Islamist militancy in the region.

(Reporting by Gwladys Fouche; Editing by Raissa Kasolowsky)

Saudi and Bahrain welcome Trump’s scolding of Qatar

FILE PHOTO: A view shows buildings in Doha, Qatar, June 9, 2017. REUTERS/Naseem Zeitoon

RIYADH (Reuters) – Saudi Arabia and Bahrain welcomed on Saturday U.S. President Donald Trump’s demand for Qatar to stop supporting terrorism, but did not respond to a U.S. Department of State call for them to ease pressure on the Gulf state.

After severing ties with Qatar on Monday, Saudi Arabia said it was committed to “decisive and swift action to cut off all funding sources for terrorism” in a statement carried by state news agency SPA, attributed to “an official source”.

And in a separate statement issued on Friday, the United Arab Emirates praised Trump’s “leadership in challenging Qatar’s troubling support for extremism”.

Trump accused Qatar of being a “high level” funder of terrorism on Friday, even as the Pentagon and U.S. Secretary of State Rex Tillerson cautioned against the military, commercial and humanitarian effects of a blockade imposed by Arab states and others.

A separate SPA report on Saturday acknowledged Tillerson’s call for Qatar to curtail support for terrorism, but did not mention his remarks that the crisis was hurting ordinary Qataris, impairing business dealings and harming the U.S. fight against the Islamic State militant group.

Saudi Arabia said its action followed the conclusions of last month’s Arab Islamic American Summit in Riyadh, where Trump delivered a speech about Islamic extremism.

Trump said he helped plan the move against Qatar, although a senior administration official told Reuters earlier this week that the U.S. had no indication from the Saudis or Emiratis during the visit that they would sever ties with Qatar.

(Reporting by Katie Paul; editing by Alexander Smith)

Feud over Qatar deepens conflicts across Arab world

Saudi Arabia's King Salman bin Abdulaziz Al Saud (L) chats with Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed al-Nahyan in Jeddah, Saudi Arabia, June 2, 2017. Picture taken June 2, 2017. Saudi Press Agency/Handout via REUTERS

By Noah Browning and Aidan Lewis

DUBAI/TUNIS (Reuters) – The ostracism of Qatar by other powerful Arab states is deepening divisions between their respective allies vying for influence in wars and political struggles from Libya to Yemen.

The feud complicates efforts to stabilize countries reeling from years of turmoil and undermines the notion of a Sunni Muslim Arab world united against terrorism and Iran, proclaimed by U.S. President Donald Trump in his visit last month.

The quarrel is the latest chapter in the battle of wills between political Islamists and traditional Arab autocrats which has buffeted Muslim societies for decades.

Since the 2011 “Arab Spring” protests, which aspired to democratic reform but in several countries collapsed into warfare, Egypt and especially the United Arab Emirates emerged as main foes of an ascendant Muslim Brotherhood backed by Qatar.

After Saudi Arabia, Egypt and the UAE cut ties to Doha on Monday, accusing it of supporting militants and Iran, regional allies followed suit and denounced domestic foes as Qatari stooges, undermining reconciliation efforts by foreign powers.

“The whole situation has become very awkward. Qatar and its big rivals are fighting each other, but indirectly and on other people’s territory,” said Yemeni analyst Farea al-Muslimi.

“Having internal Arab messes like this escalate and get more complicated makes it pretty clear that the Arab world is far away from solving other issues like Palestine or Iraq or even the relationship with Iran.”

In Libya, the UAE and Qatar, which both played key roles in backing rebels in the uprising that toppled Muammar Gaddafi in 2011, have emerged as rivals on the battlefield with conflicting interests and visions.

The UAE, along with Egypt, has backed anti-Islamist former army commander Khalifa Haftar, appointed by a government and parliament based in the east. Qatar and Turkey have supported rival Islamist-leaning factions in western Libya.

In Yemen — mired in conflict since Saudi Arabia launched an air war in 2015 against the Houthi movement that controls the capital — a southern Yemeni secessionist council armed by the UAE opposes the internationally recognized government because it includes the Qatar-backed Muslim Brotherhood.

The council and Yemen’s Saudi-backed government, despite years of Qatar ties, cut diplomatic relations with Doha.

The eastern-based Libyan government and parliament aligned with anti-Islamist Haftar did the same.

“We are certain that the concerned states in the Gulf and Egypt will put pressure so as to drastically shift Qatar’s outrageous policies,” Mohamed Dayri, the foreign minister of the eastern government, told Reuters.

On Friday Saudi Arabia, the UAE, Egypt and Bahrain designated as terrorists five Libyans including Tripoli Grand Mufti Sadiq al-Ghariani, an influential figure for anti-Haftar militias in western Libya. They also listed the Benghazi Defence Brigades (BDB), a group that has tried to revive armed opposition to Haftar since last year.

TIME TO WITHDRAW?

Qatar has for years punched well above its weight in world affairs by parleying its vast gas wealth into influence across the region, irking the UAE and dominant Gulf Arab power Saudi Arabia with its maverick stances and support for Islamists.

Now, Qatar’s powerful neighbors appear to be demanding a retreat from those conflicts.

“The message now is that it’s time for Qatar to withdraw from the region and essentially not have an independent foreign policy,” said Peter Salisbury, an analyst at Chatham House.

“It looks like Saudi Arabia and the UAE won’t be satisfied until Qatar is pushed to stop funding the groups they don’t like, the Muslim Brotherhood and Hamas.”

But these demands come while Qatar’s allies have for the most part been forced onto the back foot.

Blessed by Saudi Arabia and the UAE, former Egyptian army chief and now president Abdel Fattah al-Sisi ousted the Qatar-aligned elected Islamist president Mohamed Mursi in a 2013 military takeover.

Palestinian Islamist group Hamas, some of its leaders based in Doha, is no closer to leading the Palestinian people then when it fell out with secular rivals in the Fatah party in 2007.

The Gulf spat is likely to further fuel inter-rebel conflicts in Syria, where rivalries between Qatar and Saudi Arabia have been showcased since the earliest days of the crisis.

“EXTREMIST DIVIDENDS”

Qatar’s friends who retain a plausible chance at national leadership, in Libya and Yemen, may have the most to lose from the row.

Haftar styles himself as a bane of extremism, and has become the dominant figure in eastern Libya since launching a campaign against Islamist groups and former rebels in Benghazi three years ago. Many suspect he seeks national rule.

His supporters believe the Qatar spat vindicates their anti-Islamist stance, as Haftar has gained ground and the U.N.-backed Tripoli government that he has rejected has been floundering.

Any hardening of the Haftar camp’s stance could complicate mediation efforts by Libya’s neighbors to the west, Algeria and Tunisia, which have been pushing for an inclusive, negotiated solution.

“Qatar being made an example out of … means that Haftar, Egypt and the UAE will experience much less diplomatic pushback as they ramp up their military campaign inside Libya itself,” said Jalel Harchaoui, a researcher at Paris 8 University.

(Editing by Samia Nakhoul)

Gulf states squeeze Qatar as U.S., Kuwait probe for solution to row

Buildings are seen on a coast line in Doha, Qatar June 5, 2017. REUTERS/Stringer

By Tom Finn

DOHA (Reuters) – Gulf states cranked up the pressure on Qatar on Thursday as U.S. President Donald Trump and Kuwait’s emir worked to end an Arab row that Qataris say has led to a blockade of their country, an investment powerhouse and supplier of gas to world markets.

With Trump offering to help resolve the crisis, possibly with a meeting at the White House, the United Arab Emirates cut postal links to Qatar, and close Saudi ally Bahrain reiterated a demand that Doha distance itself from regional foe Iran.

Bahrain, Saudi Arabia, Egypt, the UAE and several other countries severed diplomatic and transport ties with Doha on Monday, accusing it of supporting Islamist militants and their arch-foe Iran – charges Qatar says are baseless.

Normally guarded about politics, Qataris expressed outrage.

“It is a blockade! Like that of Berlin. A declaration of war. A political, economic and social aggression,” a Qatari diplomat said. “We need the world to condemn the aggressors.”

With food and other supplies disrupted and worries mounting about deepening economic turbulence, banks and firms in Gulf Arab states were seeking to keep business links to Qatar open and avoid a costly firesale of assets.

Turkey has brought forward a troop deployment to Qatar and pledged to provide food and water supplies to its Arab ally, which hosts a Turkish military base. Turkish President Tayyip Erdogan has said isolating Qatar would not resolve any problems.

The UAE’s national postal service, Emirates Post Group, suspended all postal services to Qatar, state news agency WAM said, the latest in a series of measures degrading commercial and communications links with Doha.

The Abu Dhabi Petroleum Ports Authority also reimposed a ban on oil tankers linked to Qatar calling at ports in the UAE, reversing an earlier decision to ease restrictions, and potentially creating a logjam of crude cargoes.

Trump initially took sides with the Saudi-led group before apparently being nudged into a more even-handed approach when U.S. defense officials renewed praise of Doha, mindful of the major U.S. military base hosted by Qatar that serves, in part, as a launchpad for strikes on Islamic State jihadists.

In his second intervention in the dispute in as many days, Trump urged action against terrorism in a call with Qatari Emir Sheikh Tamim bin Hamad al-Thani, a White House statement said, suggesting a meeting at the White House “if necessary”.

It said that Trump, in a later call with Abu Dhabi’s crown prince, Sheikh Mohammed bin Zayed al-Nahayan, called for unity among Gulf Arabs “but never at the expense of eliminating funding for radical extremism or defeating terrorism”.

Officials from Qatar and its Gulf Arab neighbors embarked on a quickening round of shuttle diplomacy, with the Qatari foreign minister due in Moscow and Brussels and Bahrain’s king visiting his ally Egypt for talks on the crisis.

SAUDIS SAY OUTSIDE MEDIATION UNWANTED

Qatar called for “dialogue and diplomacy”.

The Qatari ambassador to Washington, Meshal Hamad al-Thani, wrote on Twitter that a key pillar of Doha’s foreign policy was mediation. “Open channels of communication means venues for conflict resolution,” he said.

But Saudi Foreign Minister Adel al-Jubeir said Gulf states could resolve the dispute among themselves without outside help.

“We have not asked for mediation, we believe this issue can be dealt with among the states of the Gulf Cooperation Council (GCC),” he told a news conference with his German counterpart during a visit to Berlin broadcast on Saudi state television.

The foreign minister of Oman met fellow GCC member Kuwait’s emir for talks. The Kuwaiti leader went to the UAE and Qatar on Wednesday for talks on the crisis and is now back in Kuwait.

In the meantime, Qatar’s neighbors kept up a drumbeat of criticism and warnings.

In an interview with BBC radio, UAE Ambassador to Russia Omar Saif Ghobash said Qatar had to choose between supporting extremism or supporting its neighbors.

“We have all kinds of recordings taking place where they (Qatar) are coordinating with al Qaeda in Syria,” he said.

“Qatar needs to decide: Do you want to be in the pocket of Turkey, Iran and Islamic extremists? They need to make a decision; they can’t have it both ways.

The Saudi newspaper al Watan published what it called a list of eight “extremist organizations” seen as working to destabilize the region from Qatar, including Qatar’s al Jazeera news channel, that were targeted by Gulf Arab states.

Qatar has backed Islamist movements but vehemently denies supporting terrorism. It provides a haven to anti-Western groups such as the Afghan Taliban, Palestinian Hamas and Algeria’s Islamic Salvation Front. Qatar says it does not accept its neighbors’ view that any group with an Islamist background is terrorist. Qatar’s emir has said such a view is a big mistake.

In an interview published by Saudi-owned Asharq al Awsat newspaper, Bahraini Sheikh Khalid bin Ahmed al-Khalifa said conditions posed by the four countries for a resolution of the crisis were “crystal clear”.

“NUMBER ONE ENEMY IRAN”

“Qatar has to redress its path and has to go back to all previous commitments, it has to stop media campaigns and has to distance itself from our number one enemy Iran.”

Jubeir declined to confirm a list of 10 demands published by Al Jazeera, which included shutting down the widely watched, Doha-based satellite network. But he added that Qatar knew what it needed to do to restore normal relations.

Turkey’s Erdogan called Kuwait’s ruler, Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, late on Wednesday and discussed developments in the Gulf and ways to cement cooperation between Muslim countries, the Kuwaiti state news agency KUNA said. Turkey, like Kuwait, has offered to mediate.

In a sign of the economic damage from the dispute, Standard & Poor’s downgraded Qatar’s debt on Wednesday as the country’s riyal currency fell to an 11-year low amid signs that portfolio investment funds were flowing out because of the rift.

UAE Minister of State for Foreign Affairs Anwar Gargash told Reuters more economic curbs would be imposed on Qatar if necessary and said Doha needed to make ironclad commitments to change what critics call a policy on funding Islamist militants.

He later told France 24 television that any further steps could take the form of “a sort of embargo on Qatar”.

In a measure that cemented earlier UAE restrictions on air transport, the country’s General Civil Aviation Authority said it had closed the air space for all air traffic to and from Doha until further notice.

Regional tensions have been aggravated by the worst dispute among Gulf Arabs for two decades and were ratcheted up further on Wednesday after militants attacked targets in Tehran, killing at least 12 people.

Shi’ite Muslim Iran blamed Sunni Muslim arch-rival Saudi Arabia for the attack, which was claimed by the Sunni Islamic State. Riyadh denied any involvement.

(Additional reporting by Reem Shamseddine, Aziz El Yaakoubi, Sylvia Westall, Sami Aboudi and Andrew Torchia, Writing by William Maclean, Editing by Mark Heinrich)