Diplomatic efforts have failed to bring an end to the stand-off between Qatar and the so-called Anti-Terror Quartet (Saudi Arabia, UAE, Egypt and Bahrain). Encouragingly, though, there are signs that tensions are easing and that the groundwork is being laid for a compromise deal. The original list of thirteen demands put forward to Qatar has been amended to six, which appear to be more closely aligned with those that the country agreed to following a previous spat in 2014. Moreover, the worst fears over the impact of the blockade on Qatar’s economy have faded. The country’s oil and gas shipments are still flowing, while imports have been routed via Oman rather than Dubai. Officials insist that there has been minimal capital flight. As evidence that investors’ concerns have eased, the Qatar stock market has jumped 6.5% from its trough and yields on the country’s 2026 dollar bond have fallen by 30bp.
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