Emirates will suspend its flights to and from Doha from Tuesday morning

Saudi Arabia said it also would shut its land border with Qatar, effectively cutting off the country from the rest of the Arabian Peninsula.

Reports last week suggested that the report may never be published because of the sensitivity of its findings regarding Saudi Arabia, though the Home Office said a decision on its release would be made after the election. "These countries have no other option but to start regional dialogue", Hamid Aboutalebi, deputy chief of staff of Iran's President Hassan Rouhani, tweeted on Monday.

Qatar, a gas-rich nation, is hosting the 2022 FIFA World Cup and is home to a major United States military base, the al-Udeid Air Base - which houses some 10,000 American troops.

The hawkish tone Trump brought in his visit to over 50 Muslim leaders in Riyadh on Tehran and on terrorism is seen to have laid the groundwork for the diplomatic crisis.

"The measures are unjustified and are based on claims and allegations that have no basis in fact", Al Jazeera TV cited the statement, adding the decisions would "not affect the normal lives of citizens and residents".

An impact is likely to be felt on the UAE's tourism industry, from hotel bookings to vehicle rentals and everything in-between, particularly over periods such as the Eid holiday, where 25 to 30 per cent of visitors are Qataris, second only to Saudi visitors and followed by those from Kuwait, added Parob.

The carriers are now required to prevent passengers flying from their Middle East hubs to the United States from carrying nearly all types of electronic devices in the cabin.

Saudi Arabia's civil aviation authority said any carrier from a third country wishing to fly over the kingdom to Qatar would need to apply within a week for special permission.

The official Saudi state news agency said early on Monday that diplomatic and consular relations had been severed with Qatar "proceeding from the exercise of its sovereign right guaranteed by global law and the protection of national security from the dangers of terrorism and extremism".

The statement accused Qatar of supporting what it described as Iranian-backed militants in its restive and largely Shia Muslim-populated eastern region of Qatif and in Bahrain.

It added that Yemen supported the decision of a Saudi-led coalition, fighting for more than two years to oust the Houthis from the Yemeni capital Sanaa, to remove Qatar from its ranks.

Qatar had participated in the coalition since March 2015.

Iran called for dialogue.

Qatar long has faced criticism from its Arab neighbours over its support of Islamists.

Gulf countries led by Saudi Arabia fell out with Qatar over its backing of then-Egyptian President Mohammed Morsi, a Brotherhood member.

Saudi Arabia, Egypt, Yemen, Bahrain and the United Arab Emirates (UAE) on Monday announced they were severing diplomatic ties with Qatar, and accused the Gulf state of supporting terror groups, including the Muslim Brotherhood.

The last flight from Doha to Abu Dhabi will depart as EY390 at 04:00 (local time) on June 6, the ariline said in a statement. Some of the market's top blue chips were hit hardest, with Qatar National Bank, the country's largest bank, dropping 5.7 percent.

Saudi Arabia, along with Bahrain and the U.A.E., gave Qatari diplomats 48 hours to leave. At that time, travel links were maintained and Qataris were not expelled. "And obviously they have now bubbled up to a level that countries decided they needed to take action in an effort to have those differences addressed", Tillerson said.

"It seems that the Saudis and Emiratis feel emboldened by the alignment of their regional interests - toward Iran and Islamism - with the Trump administration", Ulrichsen said.

The diplomatic fallout also threatens the worldwide prestige of Qatar, which is set set to host the 2022 World Cup.

Heightened tensions between Saudi Arabia, the world's biggest crude exporter, and Iran typically draw market attention to the Strait of Hormuz, through which the U.S. Department of Energy estimates about 30 percent of seaborne oil trade passes.

  • Zachary Reyes