Led by Saudi Arabia, several states in the Middle East and Africa have severed ties with Qatar since June 5, accusing the gas-rich Gulf state of supporting terrorism and Iran. Qatar denies the allegations.

Qatar announced on Sunday that it was establishing a committee to pursue compensation claims potentially worth billions of dollars over the country's blockade by Gulf states.
Qatar announced on Sunday that it was establishing a committee to pursue compensation claims potentially worth billions of dollars over the country's blockade by Gulf states.

Saudi Arabia, the United Arab Emirates (UAE) and several other Sunni-majority countries have severed relations with Qatar since June 5, accusing the Gulf state of supporting terrorism based on its ties to the Muslim Brotherhood, Hamas and the Taliban.

Another point of departure is Qatar's ties with Iran, with whom it shares one of the world's biggest gas fields.

Qatar has denied the accusations and called the collective decision "unjustified." Kuwait, Turkey and the US have all urged a political solution as the bloc isolates Qatar using various ad hoc sanctions, including shutting down their airspace to Qataris and blocking import routes.

The dispute began in May when Qatar's Emir Sheikh Tamim bin Hamad al Thani was reported to have made statements on the state news agency supporting Iran. Doha said the statements were fabricated and disseminated via a hack.

Here are the latest developments in the crisis:

July 10, Monday

Tillerson to visit Gulf for talks on Qatar crisis

US Secretary of State Rex Tillerson will start a four-day visit to Kuwait, Qatar and Saudi Arabia on Monday for talks with Gulf Arab leaders, the State Department announced.

Tillerson's trip appeared aimed at finding a breakthrough in the crisis over sanctions imposed on Qatar by Saudi Arabia and its allies.

Qatar has $340 billion in reserves

Qatar has $340 billion in reserves including holdings of its sovereign wealth fund that could help the Gulf country to weather the isolation by its powerful Arab neighbours, central bank governor Sheikh Abdullah Bin Saoud al Thani told CNBC.

"This is the credibility of our system, we have enough cash to preserve any kind of shock," Thani said.

The central bank has $40 billion in reserves plus gold, while the Qatar Investment Authority has $300 billion in reserves that it could liquidate, he said.

"Qatar has already had a good and unique system. We have laws established against all these kinds of terrorists," Thani told CNBC.

"We work with the IMF (International Monetary Fund) and other institutions to establish our laws and audits and reviews."

For more on previous developments click here.

Source: TRTWorld and agencies