Stocks in Qatar were on course for their biggest one-day percentage drop since late 2014 on Monday, as a spat between the country and neighboring nations escalated.
Saudi Arabia, Egypt, Bahrain and United Arab Emirates broke diplomatic ties with Qatar on Monday over accusations that it was backing terrorism. It is an allegation that the tiny country, which shares just one border with the Saudis, denies. The disagreement initially drove up prices on Monday for West Texas Intermediate crude CLN7, -0.69% and Brent oil LCOQ7, -0.82% , but those gains have faded.
Qatar is the world’s biggest exporter of liquefied natural gas and also a member of the Organization of the Petroleum Exporting Countries, though not actually a major crude producer. There are concerns that the discord will drive up prices for natural gas and oil.
In any case, it was a rough day for Qatar stocks on Monday, with the QE All Share Index recently down 7.3%. According to FactSet data, that would be the biggest drop since December 2014, when the gauge fell 7.4% amid a collapse in oil prices.
Qatar QE Index
The index is dominated by financial stocks, and Qatari National Bank was hardest hit with a more than 9% drop on Monday.