Alliance led by Saudi Arabia severed commercial and diplomatic ties with Qatar
Qatar may be tiny - about half the size of New Jersey - but it's a financial superpower.
The country is the world's biggest producer of liquefied gas and, through its $335 billion sovereign wealth fund, owns stakes in companies from Barclays to Russian oil giant Rosneft.
The move also poses a dilemma for the Trump administration. Qatar and Saudi Arabia are both American allies as are Saudi's partners - Egypt, Bahrain and the UAE.
Qatar is also home to the U.S. military’s Mideast command. Secretary of State Rex Tillerson urged all parties to resolve their differences.
It's not entirely clear what Saudi wants. But it's a fair bet that it expects Qatar to come to heel over Iran and join its campaign to isolate the Islamic Republic. If Qatar resists, it will only add to the region's instability.
Source: Bloomberg