Qatar's stock market tumbled more than 7 percent on Monday as six of the Middle Eastern country's neighbors reportedly severed diplomatic relations with Doha for allegedly supporting terrorism.
The key stock index in Doha slipped shortly after Monday's open – the benchmark's sharpest fall in more than seven years – before paring some its losses to trade down 7.2 percent at around 3:00 p.m. local time.
Six countries, including Saudi Arabia and Egypt, had all coordinated on Monday to accuse the wealthy Gulf state of supporting terrorism, which Qatar has denied. Investors viewed the diplomatic withdrawal as a major breakdown between powerful Gulf nations, who are also close U.S. allies.
While Saudi Arabia – the world's leading crude oil exporter – said Qatar had supported "Iranian-backed terrorist groups," Qatar described the joint decision as having "no basis in fact" and was therefore "unjustified".