￼Geopolitical tension in Middle East, triggered by the decision of several Arab states to cut diplomatic ties with Qatar, may affect global oil price.
TEMPO.CO, Jakarta – Geopolitical tension in the Middle East, triggered by the decision of several Arab states to cut diplomatic ties with Qatar, may affect global oil price, Indonesian Coordinating Minister for Economic Affairs Darmin Nasution said.
“It will likely affect oil prices not only in Indonesia but also in other countries,” Darmin stated at his office on Thursday.
Global crude price stayed lower on Monday (June 5) due to the geopolitical tension in the Middle East, which may cause market concern, Xinhua reported.
Analysts believed the decision by several Middle Eastern countries to cut diplomatic ties with oil-rich Qatar will isolate Doha regionally, raising concern about the global agreement to cut oil production.
Saudi Arabia, the United Arab Emirates, Egypt, and Bahrain have cut diplomatic ties with Qatar, accusing it of supporting terrorist groups and opening up the worst rift in years among some of the most powerful states in the Arab world.
The four states announced the closure of transport ties with Qatar and gave Qatari visitors and residents two weeks to leave their countries.
Yemen, Libya’s eastern-based government, and the Maldives have also joined in cutting their ties with Qatar.
Reuters reported that Saudi Arabia accused Qatar of backing militant groups and broadcasting their ideology, an apparent reference to Qatars influential state-owned satellite channel al Jazeera.