Following the decisions by Saudi Arabia, United Arab Emirates (UAE), Bahrain, Egypt, Yemen and Libya to cut diplomatic ties with Qatar Monday, the price of oil gained over 1 percent while stock prices in the region retreated across the board.

Markets reacted to the escalation of the diplomatic row in the Gulf region and sent the price of oil 1.04 percent higher to 50.47 U.S. dollars per barrel.

In Doha, the Qatar Exchange Index plummeted 7.94 percent to hit 9,135, marking an 18-month low.

In the UAE, the Dubai financial market DFM dived 1.36 percent one hour after opening and fell below 3,300. Bank shares in particular posted heavy losses.

Meanwhile, Dubai-based Emirates Airline, the international carrier of the UAE, said its scheduled passenger flight from Dubai to Doha at 4:35 pm local time (1235 GMT) was cancelled, an airline call center agent confirmed.

Media reports indicated that all UAE airlines, including budget flyer FlyDubai and Etihad from Abu Dhabi, will stop flying to Qatar from Tuesday onward.

In Abu Dhabi, the UAE capital, the ADX General Index declined by 0.36 percent, trading around 4,467.

The Bahraini All-Share Index bucked the regional slump and gained 0.58 percent.

Source: NAM News Network