On June 5th, several Middle Eastern & North African nations cut off ties with the Persian Gulf country of Qatar, thus putting them at a risk of invasion. Additionally, these countries suspended international transport to & from the gulf nation, and also asked for deportation of Qatari citizens.
A crisis of the likes of this was hardly unforeseen, but recent happenings have only catalyzed and accelerated the process. One of such happenings took place in April, when Qatar attempted to broker a deal between Sunni & Shiite militants in Iraq & Syria, with the primary motive to ensure the secure return of Qatari hostages held by these militants. The deal, which involved the payment of approximately $700 million USD to Iranian-backed militants, however, enraged Saudi Arabia. Links were broken thereafter. The situation went further south when the Qatari News Agency’s website was allegedly hacked, claiming support for Iran, Hamas & Israel. Such an act placed Qatar in a situation with odds (as well as nations) against them, since Hamas is viewed by the likes of the US as a terrorist organization. The gulf nation is also believed to be funding Islamic terror groups such as the Taliban and the Al-Qaeda, and implements lax anti-terrorist financing laws.
What does the future hold for Qatar? Being a dry country, its only resourcefulness lies in the field of oil extraction. However, most of the basic-necessity requirements of the country are brought in from its neighbours –the same ones who have now turned their heads. Inflation owing to scarcity might soon be inevitable. USA’s primary operating base in the fight against ISIS is situated in Qatar. If the diplomatic crisis develops into armed conflict, the US may need to withdraw, thus putting the world at risk of terrorism at a larger scale than now.
THE RATIONAL ECONOMISTS 