Five countries, namely Egypt, Saudi Arabia, the UAE, Bahrain and Yemen, announced cutting off relations with Qatar on Monday for supporting terrorist groups – File photo
The cost of insuring exposure to Qatari sovereign debt rose to the highest level in two months on Monday after Saudi Arabia, Egypt, the United Arab Emirates and Bahrain severed ties with Doha, accusing it of supporting terrorism.
Five-year credit default swaps for Qatar rose 2 basis points (bps) from Friday's close to 61 bps, the highest level since early April.
The coordinated move from the Gulf states dramatically escalates a dispute over Qatar's support of the Muslim Brotherhood, the world's oldest Islamist movement, and adds accusations that Doha even backs the agenda of regional arch-rival Iran.
Ratings agency Moody's said the rift could have an impact on Qatar's credit rating if trade and capital flows are disrupted . Qatar sovereign dollar bonds also fell.