UAE, Saudi banks hold off dealing with Qatar
dubai — THE QATARI currency CAME under pressure on TUESDAY as gulf commercial banks BEGAN to hold off on DEALING with QATARI banks, BANKING sources told reuters.
some SAUDI ARABIAN, UAE AND BAHRAINI banks were DELAYING business with QATARI banks, such as letters of CREDIT.
SAUDI ARABIA’S central bank ADVISED banks in THE kingdom not to TRADE with QATARI banks in QATARI riyals, THE sources SAID. THE central bank DID not respond to A request for comment. banks from THE UAE, europe AND ELSEWHERE HAVE BEEN LENDING to QATARI institutions.
gulf BANKING sources who DECLINED to BE NAMED SAID SAUDI ARABIAN, UAE AND BAHRAINI banks were postponing DEALS until they RECEIVED GUIDANCE from THEIR central banks on how to HANDLE business with qatar.
“WE will not take action without central bank GUIDANCE, but it is wise to evaluate what you GIVE to QATARI clients AND hold off until THERE is further clarity,” SAID A UAE banker, ADDING that TRADE FINANCE HAD stalled for THE time BEING.
THE sources also SAID THE UAE AND BAHRAINI central banks HAD ASKED banks under THEIR supervision to report THEIR exposure to QATARI banks. THE UAE AND BAHRAINI central banks DID not respond to requests for comment.
Qatar bond plunges
qatar’s 2026 sovereign dollar bond fell further on TUESDAY to its lowest level SINCE MID-MARCH, AND THE cost of insuring exposure to QATAR DEBT rose to near four-month HIGHS. THE 2026 dollar-denominated eurobond
The General Authority of Civil Aviation has decided to cancel all licences granted to Qatar Airways and to close all of its offices in the kingdom within 48 hour GACA statement
fell 0.9 cents to 97.8 cents, A near three-month low, EXTENDING monday’s falls.
SAUDI ARABIA on TUESDAY revoked THE operating LICENCE of QATAR airways AND ORDERED THE airline’s offices to close within 48 hours, state MEDIA reported, as A regional diplomatic crisis ESCALATED.
“THE GENERAL authority of CIVIL aviation HAS DECIDED to CANCEL all LICENCES GRANTED to QATAR airways AND to close all of its offices in THE kingdom within 48 hours,” A statement CARRIED by THE official SPA news AGENCY SAID. “WE urge all passengers who PURCHASED tickets to or from QATAR to CHECK THE AIRLINE WEBSITE or contact THEIR travel AGENT online for A refund,” THE statement ADDED.
Platts restricts Qatari crude
OIL PRICING AGENCY S&P global platts SAID it will not automatically INCLUDE QATARI-LOADING CRUDE in its MIDDLE east benchmark.
platts’ move is unlikely to HAVE A significant impact on THE BROADER oil market BECAUSE QATAR is one of THE smaller producers in THE organisation of THE petroleum exporting countries.
singapore — The costs of Qatari energy and commodity exports are likely to rise as the UAE’s ban on Qatari vessels cuts the ships off from the region’s main refuelling port, forcing ships to sail further for fuel or pay higher prices.
Saudi Arabia and the UAE, along with Egypt, Yemen and Bahrain, on Monday cut diplomatic ties with Qatar amid accusations the country supported terrorists. The Arab allies are applying many economic pressure points, including barring Qatari flagged ships from entering their waters.
Around half a dozen oil, chemical and liquefied natural gas (LNG) tankers coming from Qatar have left UAE waters or halted in the open ocean instead of docking in the UAE or Saudi Arabia as planned, according to shipping data in Thomson Reuters Eikon.
Qatar is the world’s biggest LNG exporter, sending shipments of the fuel used in power generation to key users in Japan, China and India, and the country also exports about 620,000 barrels per day of oil, among the smallest Middle East oil producers.
However, vessels leaving Qatari ports typically refuel ahead of their voyages at the UAE port of Fujairah, the Gulf’s largest ship-fuel or bunkering port. That is leaving shipowners and charters scrambling to plan the logistics for their vessels.
“It’s a big mess this morning,” said a Singapore-based shipbroker.
The Britanis super-tanker, capable of carrying up to two million barrels of oil, was parked in Fujairah’s anchorage zone for the past week, but since Monday moved to just beyond Fujairah’s port limits, the data on Eikon showed.
Lying near the Strait of Hormuz,
Some of the affected vessels will probably have to look towards Iraq, Iran or Oman for bunkers, however, it depends on the political stance of those countries Matt Stanley, commodities broker at Freight Investor Services
which ships pass on their way to customers in Asia, the United States, or Europe, Fujairah is one of the world’s most important ports for the global energy market. Besides refuelling, vessels also merge cargoes with those of other tankers before sending blended supplies to their final destination.
Ships looking to fuel in Fujairah may incur delays and higher costs after being forced to divert to nearby regional ports, or to Pakistan, Sri Lanka, India, and even as far as Singapore, shippers and traders said.
“Some of the affected vessels sailing out of the Gulf will probably have to look towards Iraq, Iran or Oman for bunkers, however, it depends on the political stance of those countries,” said commodities broker Matt Stanley at Freight Investor Services in Dubai.
Blocking the Qatari vessels could displace up to 25 per cent of the between 800,000 and 900,000 tonnes of marine fuels sold in Fujairah each month, said two trade sources.
Because of the small size of its oil exports, Qatari crude tends to be co-loaded onto tankers along with other regional crudes to make the voyage economical. That process may also be disrupted because of the ban.
While the UAE is clear in banning both Qatari-flagged vessels and ships coming from Qatar, it was not immediately certain whether Saudi Arabia is taking as strong a position.
The Aramco-owned supertanker Asian Progress V, which is under a Singaporean flag and carrying Qatar Land crude, remains berthed at Saudi Arabia’s Ras Tanura Abu Sa’fah berth where Saudi Arab Medium crude loads.
Besides disrupting energy exports, the UAE ban on Qatari ships is impacting aluminium exports. Norsk Hydro on Tuesday said Qatari metal exports that typically were reloaded on larger ships at the UAE port of Jebel Ali have been blocked amid the ban.