Norway-Russia relations to deteriorate following U.S. Marines’ base extension: Russian embassy

FILE PHOTO: U.S. Marines, who are to attend a six-month training to learn about winter warfare, arrive in Stjordal, Norway January 16, 2017. NTB Scanpix/Ned Alley/via REUTERS

OSLO (Reuters) – Norway’s decision to extend the presence of U.S. Marines on its soil will worsen relations with neighboring Russia and could escalate tensions on NATO’s northern flank, the Russian embassy in Oslo told Reuters on Saturday.

Some 330 Marines will be stationed in Norway until the end of 2018, the government said on Wednesday, doubling the length of what was initially billed as a one-year trial period.

The deployment last January to practice winter warfare and cross-country skiing, and to participate in joint exercises, marked the first foreign troops to be stationed in the NATO member country since the end of World War Two.

“We consider that this step contradicts Norwegian policy of not deploying foreign military bases in the country in times of peace,” the Russian embassy wrote in an statement to Reuters.

It further “makes Norway (a) not fully predictable partner, can also escalate tension and lead to destabilization of the situation in the Northern region,” it added.

Norway has downplayed the significance of the deployment, emphasizing the training element and denying that the arrival of Marines was an act directed against Russia. The U.S. troops are stationed some 1,500 km (900 miles) from the Russian border.

“A high level of regular allied presence creates a stabilizing state of normality in times of peace, which contributes to deterrence and defence,” Norwegian Defence Minister Ine Eriksen Soereide said in a June 21 statement.

The center-right minority government’s decision received broad support from Norwegian opposition parties, but was criticized by the far left.

“The deployment … shows the government being more concerned by being well-liked by the Americans and in NATO than by conducting responsible security policy,” Lars Haltbrekken of Norway’s Socialist Left Party told public broadcaster NRK.

(Reporting by Nerijus Adomaitis, Gwladys Fouche and Terje Solsvik; Editing by Toby Chopra)

Iran’s supreme leader criticizes U.S. policies toward Tehran

FILE PHOTO: Iran's Supreme Leader Ayatollah Ali Khamenei delivers a speech during a ceremony marking the death anniversary of the founder of the Islamic Republic Ayatollah Ruhollah Khomeini, in Tehran, Iran, June 4, 2017. TIMA via REUTERS

BEIRUT (Reuters) – Iranian Supreme Leader Ayatollah Ali Khamenei lashed out on Sunday at U.S. President Donald Trump’s administration and what he characterized as its hostility to the Islamic Republic.

“This inexperienced group has not recognized the people and leaders of Iran,” he said, according to the website for state TV. “When they get hit in the mouth, at that time they’ll know what’s going on.”

Khamenei and other senior Iranian officials have ramped up their criticism of the United States in recent weeks after Trump went on an official visit last month to Saudi Arabia, Iran’s main regional rival.

During that visit, Trump singled out Iran as a key source of funding and support for militant groups. He has also criticized the nuclear deal between Iran and six major powers, including the United States, that led to the lifting of most sanctions against Iran, in return for curbs on its nuclear programme. Trump has said Washington would review the deal but stopped short of pledging to scrap it.

Iran and the United States cut diplomatic ties shortly after Iran’s 1979 Islamic revolution and enmity to Washington has long been a rallying point for hardline supporters of Khamenei in Iran.

Khamenei has accused the United States and its regional ally Saudi Arabia of funding hardline Sunni militants, including Islamic State, which carried out its first attack in Iran earlier this month, killing 17 people.

Riyadh has denied involvement in the suicide bombings and gun attacks on Iran’s parliament and the mausoleum of the Islamic Republic’s founder, Ayatollah Ruhollah Khomeini.

Khamenei said in his speech on Sunday that any efforts to destabilize the Islamic Republic would not succeed.

“In the past 38 years, when has there been a time when you haven’t wanted to change the Islamic system?” Khamenei said, according to Fars News. “Your head has hit the rock each time and always will.”

(Reporting by Babak Dehghanpisheh; Editing by Peter Cooney)

U.S. Senate’s Iran sanctions are breach of nuclear deal: senior Iranian official

FILE PHOTO: Iran's national flags are seen on a square in Tehran February 10, 2012, a day before the anniversary of the Islamic Revolution. REUTERS/Morteza Nikoubazl/File Photo

ANKARA (Reuters) – The U.S. Senate’s decision to impose new sanctions on Iran is an “unquestionable” violation of a nuclear deal reached in 2015 between Tehran and six major powers including the United States, Iranian media quoted a senior Iranian official as saying.

The Senate approved on Thursday the sanctions on Iran over its ballistic missile program and other activities not related to the international nuclear agreement.

“The U.S. Senate’s move is unquestionably in breach of both the spirit and the letter of the nuclear deal,” Ali Akbar Velayati, a senior adviser to Supreme Leader Ayatollah Ali Khamenei, was reported by media as saying on Friday.

“The Iranian committee tasked with monitoring the accord will certainly examine the congressional move and come up with a decent response.”

The U.S. legislation still must pass the House of Representatives and be signed by President Donald Trump to become law.

Trump has in the past called the nuclear agreement between Tehran and the major powers “the worst deal ever negotiated”. Under the deal, Iran agreed to curb its nuclear program in return for the lifting of nuclear-related sanctions.

The United States and its regional ally Saudi Arabia accuse Iran of subverting regional security. Iran also accuses its arch foes, Washington and Riyadh, for promoting Islamist militancy in the region.

“America is trying to cover up the repeated defeats it has suffered from Iran in Iraq and Syria,” Velayati said.

(Writing by Parisa Hafezi; Editing by Gareth Jones and Pritha Sarkar)

China says it is vigilant as two U.S. bombers fly over South China Sea

FILE PHOTO: A B-1B Lancer from the U.S. Air Force 28th Air Expeditionary Wing heads out on a combat mission in support of strikes on Afghanistan in this file picture released December 7, 2001. Cedric H.Rudisill/USAF/Handout via REUTERS

BEIJING (Reuters) – China said on Friday it was monitoring U.S. military activities in the South China Sea, after two U.S. bombers conducted training flights over the disputed waters.

The U.S. Pacific Command said on its website that two U.S. Air Force B-1B Lancer bombers flew a 10-hour training mission from Guam over the South China Sea on Thursday, in conjunction with the Navy’s USS Sterett guided-missile destroyer.

The exercise comes after a U.S. warship in late May carried out a “maneuvering drill” within 12 nautical miles of an artificial island built up by China in the South China Sea.

The U.S. military conducts such “freedom of navigation” patrols to show China it is not entitled to territorial waters there, U.S. officials said at the time.

The latest exercise was part of Pacific Command’s “continuous bomber presence” program, but it did not give details on where it was conducted, and did not refer to it as a freedom-of-navigation operation.

“China always maintains vigilance and effective monitoring of the relevant country’s military activities in the South China Sea,” the ministry said in a statement, referring to the United States.

“China’s military will resolutely safeguard national sovereignty, security and regional peace and stability,” it said.

China claims nearly all of the South China Sea, through which about $5 trillion in ship-borne trade passes each year, a stance contested by Brunei, Malaysia, the Philippines, Taiwan and Vietnam.

The United States has criticized China’s construction of islands and build-up of military facilities there, concerned they could be used to restrict free movement and extend China’s strategic reach.

U.S. allies and partners in the region had grown anxious as the administration of U.S. President Donald Trump had held off on carrying out South China Sea operations during its first few months in office.

(Reporting by Michael Martina; Editing by Robert Birsel)

Feud over Qatar deepens conflicts across Arab world

Saudi Arabia's King Salman bin Abdulaziz Al Saud (L) chats with Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed al-Nahyan in Jeddah, Saudi Arabia, June 2, 2017. Picture taken June 2, 2017. Saudi Press Agency/Handout via REUTERS

By Noah Browning and Aidan Lewis

DUBAI/TUNIS (Reuters) – The ostracism of Qatar by other powerful Arab states is deepening divisions between their respective allies vying for influence in wars and political struggles from Libya to Yemen.

The feud complicates efforts to stabilize countries reeling from years of turmoil and undermines the notion of a Sunni Muslim Arab world united against terrorism and Iran, proclaimed by U.S. President Donald Trump in his visit last month.

The quarrel is the latest chapter in the battle of wills between political Islamists and traditional Arab autocrats which has buffeted Muslim societies for decades.

Since the 2011 “Arab Spring” protests, which aspired to democratic reform but in several countries collapsed into warfare, Egypt and especially the United Arab Emirates emerged as main foes of an ascendant Muslim Brotherhood backed by Qatar.

After Saudi Arabia, Egypt and the UAE cut ties to Doha on Monday, accusing it of supporting militants and Iran, regional allies followed suit and denounced domestic foes as Qatari stooges, undermining reconciliation efforts by foreign powers.

“The whole situation has become very awkward. Qatar and its big rivals are fighting each other, but indirectly and on other people’s territory,” said Yemeni analyst Farea al-Muslimi.

“Having internal Arab messes like this escalate and get more complicated makes it pretty clear that the Arab world is far away from solving other issues like Palestine or Iraq or even the relationship with Iran.”

In Libya, the UAE and Qatar, which both played key roles in backing rebels in the uprising that toppled Muammar Gaddafi in 2011, have emerged as rivals on the battlefield with conflicting interests and visions.

The UAE, along with Egypt, has backed anti-Islamist former army commander Khalifa Haftar, appointed by a government and parliament based in the east. Qatar and Turkey have supported rival Islamist-leaning factions in western Libya.

In Yemen — mired in conflict since Saudi Arabia launched an air war in 2015 against the Houthi movement that controls the capital — a southern Yemeni secessionist council armed by the UAE opposes the internationally recognized government because it includes the Qatar-backed Muslim Brotherhood.

The council and Yemen’s Saudi-backed government, despite years of Qatar ties, cut diplomatic relations with Doha.

The eastern-based Libyan government and parliament aligned with anti-Islamist Haftar did the same.

“We are certain that the concerned states in the Gulf and Egypt will put pressure so as to drastically shift Qatar’s outrageous policies,” Mohamed Dayri, the foreign minister of the eastern government, told Reuters.

On Friday Saudi Arabia, the UAE, Egypt and Bahrain designated as terrorists five Libyans including Tripoli Grand Mufti Sadiq al-Ghariani, an influential figure for anti-Haftar militias in western Libya. They also listed the Benghazi Defence Brigades (BDB), a group that has tried to revive armed opposition to Haftar since last year.

TIME TO WITHDRAW?

Qatar has for years punched well above its weight in world affairs by parleying its vast gas wealth into influence across the region, irking the UAE and dominant Gulf Arab power Saudi Arabia with its maverick stances and support for Islamists.

Now, Qatar’s powerful neighbors appear to be demanding a retreat from those conflicts.

“The message now is that it’s time for Qatar to withdraw from the region and essentially not have an independent foreign policy,” said Peter Salisbury, an analyst at Chatham House.

“It looks like Saudi Arabia and the UAE won’t be satisfied until Qatar is pushed to stop funding the groups they don’t like, the Muslim Brotherhood and Hamas.”

But these demands come while Qatar’s allies have for the most part been forced onto the back foot.

Blessed by Saudi Arabia and the UAE, former Egyptian army chief and now president Abdel Fattah al-Sisi ousted the Qatar-aligned elected Islamist president Mohamed Mursi in a 2013 military takeover.

Palestinian Islamist group Hamas, some of its leaders based in Doha, is no closer to leading the Palestinian people then when it fell out with secular rivals in the Fatah party in 2007.

The Gulf spat is likely to further fuel inter-rebel conflicts in Syria, where rivalries between Qatar and Saudi Arabia have been showcased since the earliest days of the crisis.

“EXTREMIST DIVIDENDS”

Qatar’s friends who retain a plausible chance at national leadership, in Libya and Yemen, may have the most to lose from the row.

Haftar styles himself as a bane of extremism, and has become the dominant figure in eastern Libya since launching a campaign against Islamist groups and former rebels in Benghazi three years ago. Many suspect he seeks national rule.

His supporters believe the Qatar spat vindicates their anti-Islamist stance, as Haftar has gained ground and the U.N.-backed Tripoli government that he has rejected has been floundering.

Any hardening of the Haftar camp’s stance could complicate mediation efforts by Libya’s neighbors to the west, Algeria and Tunisia, which have been pushing for an inclusive, negotiated solution.

“Qatar being made an example out of … means that Haftar, Egypt and the UAE will experience much less diplomatic pushback as they ramp up their military campaign inside Libya itself,” said Jalel Harchaoui, a researcher at Paris 8 University.

(Editing by Samia Nakhoul)

Gulf states squeeze Qatar as U.S., Kuwait probe for solution to row

Buildings are seen on a coast line in Doha, Qatar June 5, 2017. REUTERS/Stringer

By Tom Finn

DOHA (Reuters) – Gulf states cranked up the pressure on Qatar on Thursday as U.S. President Donald Trump and Kuwait’s emir worked to end an Arab row that Qataris say has led to a blockade of their country, an investment powerhouse and supplier of gas to world markets.

With Trump offering to help resolve the crisis, possibly with a meeting at the White House, the United Arab Emirates cut postal links to Qatar, and close Saudi ally Bahrain reiterated a demand that Doha distance itself from regional foe Iran.

Bahrain, Saudi Arabia, Egypt, the UAE and several other countries severed diplomatic and transport ties with Doha on Monday, accusing it of supporting Islamist militants and their arch-foe Iran – charges Qatar says are baseless.

Normally guarded about politics, Qataris expressed outrage.

“It is a blockade! Like that of Berlin. A declaration of war. A political, economic and social aggression,” a Qatari diplomat said. “We need the world to condemn the aggressors.”

With food and other supplies disrupted and worries mounting about deepening economic turbulence, banks and firms in Gulf Arab states were seeking to keep business links to Qatar open and avoid a costly firesale of assets.

Turkey has brought forward a troop deployment to Qatar and pledged to provide food and water supplies to its Arab ally, which hosts a Turkish military base. Turkish President Tayyip Erdogan has said isolating Qatar would not resolve any problems.

The UAE’s national postal service, Emirates Post Group, suspended all postal services to Qatar, state news agency WAM said, the latest in a series of measures degrading commercial and communications links with Doha.

The Abu Dhabi Petroleum Ports Authority also reimposed a ban on oil tankers linked to Qatar calling at ports in the UAE, reversing an earlier decision to ease restrictions, and potentially creating a logjam of crude cargoes.

Trump initially took sides with the Saudi-led group before apparently being nudged into a more even-handed approach when U.S. defense officials renewed praise of Doha, mindful of the major U.S. military base hosted by Qatar that serves, in part, as a launchpad for strikes on Islamic State jihadists.

In his second intervention in the dispute in as many days, Trump urged action against terrorism in a call with Qatari Emir Sheikh Tamim bin Hamad al-Thani, a White House statement said, suggesting a meeting at the White House “if necessary”.

It said that Trump, in a later call with Abu Dhabi’s crown prince, Sheikh Mohammed bin Zayed al-Nahayan, called for unity among Gulf Arabs “but never at the expense of eliminating funding for radical extremism or defeating terrorism”.

Officials from Qatar and its Gulf Arab neighbors embarked on a quickening round of shuttle diplomacy, with the Qatari foreign minister due in Moscow and Brussels and Bahrain’s king visiting his ally Egypt for talks on the crisis.

SAUDIS SAY OUTSIDE MEDIATION UNWANTED

Qatar called for “dialogue and diplomacy”.

The Qatari ambassador to Washington, Meshal Hamad al-Thani, wrote on Twitter that a key pillar of Doha’s foreign policy was mediation. “Open channels of communication means venues for conflict resolution,” he said.

But Saudi Foreign Minister Adel al-Jubeir said Gulf states could resolve the dispute among themselves without outside help.

“We have not asked for mediation, we believe this issue can be dealt with among the states of the Gulf Cooperation Council (GCC),” he told a news conference with his German counterpart during a visit to Berlin broadcast on Saudi state television.

The foreign minister of Oman met fellow GCC member Kuwait’s emir for talks. The Kuwaiti leader went to the UAE and Qatar on Wednesday for talks on the crisis and is now back in Kuwait.

In the meantime, Qatar’s neighbors kept up a drumbeat of criticism and warnings.

In an interview with BBC radio, UAE Ambassador to Russia Omar Saif Ghobash said Qatar had to choose between supporting extremism or supporting its neighbors.

“We have all kinds of recordings taking place where they (Qatar) are coordinating with al Qaeda in Syria,” he said.

“Qatar needs to decide: Do you want to be in the pocket of Turkey, Iran and Islamic extremists? They need to make a decision; they can’t have it both ways.

The Saudi newspaper al Watan published what it called a list of eight “extremist organizations” seen as working to destabilize the region from Qatar, including Qatar’s al Jazeera news channel, that were targeted by Gulf Arab states.

Qatar has backed Islamist movements but vehemently denies supporting terrorism. It provides a haven to anti-Western groups such as the Afghan Taliban, Palestinian Hamas and Algeria’s Islamic Salvation Front. Qatar says it does not accept its neighbors’ view that any group with an Islamist background is terrorist. Qatar’s emir has said such a view is a big mistake.

In an interview published by Saudi-owned Asharq al Awsat newspaper, Bahraini Sheikh Khalid bin Ahmed al-Khalifa said conditions posed by the four countries for a resolution of the crisis were “crystal clear”.

“NUMBER ONE ENEMY IRAN”

“Qatar has to redress its path and has to go back to all previous commitments, it has to stop media campaigns and has to distance itself from our number one enemy Iran.”

Jubeir declined to confirm a list of 10 demands published by Al Jazeera, which included shutting down the widely watched, Doha-based satellite network. But he added that Qatar knew what it needed to do to restore normal relations.

Turkey’s Erdogan called Kuwait’s ruler, Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, late on Wednesday and discussed developments in the Gulf and ways to cement cooperation between Muslim countries, the Kuwaiti state news agency KUNA said. Turkey, like Kuwait, has offered to mediate.

In a sign of the economic damage from the dispute, Standard & Poor’s downgraded Qatar’s debt on Wednesday as the country’s riyal currency fell to an 11-year low amid signs that portfolio investment funds were flowing out because of the rift.

UAE Minister of State for Foreign Affairs Anwar Gargash told Reuters more economic curbs would be imposed on Qatar if necessary and said Doha needed to make ironclad commitments to change what critics call a policy on funding Islamist militants.

He later told France 24 television that any further steps could take the form of “a sort of embargo on Qatar”.

In a measure that cemented earlier UAE restrictions on air transport, the country’s General Civil Aviation Authority said it had closed the air space for all air traffic to and from Doha until further notice.

Regional tensions have been aggravated by the worst dispute among Gulf Arabs for two decades and were ratcheted up further on Wednesday after militants attacked targets in Tehran, killing at least 12 people.

Shi’ite Muslim Iran blamed Sunni Muslim arch-rival Saudi Arabia for the attack, which was claimed by the Sunni Islamic State. Riyadh denied any involvement.

(Additional reporting by Reem Shamseddine, Aziz El Yaakoubi, Sylvia Westall, Sami Aboudi and Andrew Torchia, Writing by William Maclean, Editing by Mark Heinrich)

Germany says will avoid escalation of Turkey row during troop pullout

German Foreign Minister Sigmar Gabriel and his Turkish counterpart Mevlut Cavusoglu attend a news conference in Ankara, Turkey, June 5, 2017. REUTERS/Umit Bektas

BERLIN (Reuters) – Germany’s foreign minister said on Tuesday he would try to avoid damaging already strained relations with NATO partner Turkey during a withdrawal of German troops, as he didn’t want a mounting dispute to push Ankara into closer ties with Moscow.

Sigmar Gabriel said his officials would do their best not to escalate the situation as German troops left the Incirlik air base in southern Turkey – in reaction to Ankara’s decision to restrict German lawmakers’ access to the soldiers.

“Above all we should organize the withdrawal so that there is no megaphone diplomacy where we trade insults,” Gabriel told Deutschlandfunk radio.

He said he had agreed with Chancellor Angela Merkel and Defence Minister Ursula von der Leyen that the German cabinet would deal with the issue on Wednesday. He also said the defense ministry had already been working on a withdrawal plan.

Turkey’s ties with Germany and other European Union states deteriorated sharply in the run-up to Turkey’s April 16 referendum that handed President Tayyip Erdogan stronger presidential powers.

Germany, citing security concerns, banned some Turkish politicians from addressing rallies of expatriate Turks before the referendum. Ankara responded by accusing Berlin of “Nazi-like” tactics, drawing rebukes from Berlin.

Turkey has reignited a row over access to German forces on its territory by imposing new restrictions on German lawmakers visiting Incirlik.

The German deployment at Incirlik is part of a mission providing reconnaissance aircraft to support U.S.-led coalition operations against Islamic State in Iraq and Syria.

Gabriel said the defense ministry had concluded it now made more sense logistically to send Germany’s Tornado jets to Jordan.

“We have no interest in pushing Turkey into a corner … we don’t want to push it towards Russia,” Gabriel said. “This is no small thing but it is about more than Incirlik, it’s about our relationship with Turkey,” he said.

Turkey has been seeking to improve relations with Russia. Last month it agreed plans with Moscow and Tehran to reduce the fighting in Syria, and has been working to end economic barriers imposed after Turkey shot down a Russian plane near the Syrian border in 2015.

Turkish Foreign Minister Mevlut Cavusoglu said after meeting Gabriel in Ankara on Monday that relations with Germany had suffered recently, but that trade and investment between the two countries were still strong.

“We spoke about how we can focus on this more, what steps could be taken to increase contact between the two nations and disperse this negative atmosphere,” he said.

Berlin is also worried about a security crackdown in Turkey after last year’s failed coup. Some 150,000 people have been sacked or suspended from their jobs and 50,000 people jailed pending trial.

“Turkey wants an expansion of the customs union. We say we are ready for that … but you have to move, too,” said Gabriel, who stressed that adhering to the rule of law was necessary.

Germany has also pushed for the release of German-Turkish journalist Deniz Yucel, who was arrested in Turkey in February on a charge of spreading terrorist propaganda.

(Reporting by Madeline Chambers; Editing by Andrew Heavens)

Turkey’s Erdogan holds talks with leaders on lowering Qatar tension: sources

Turkish President Tayyip Erdogan addresses members of parliament from his ruling AK Party (AKP) during a meeting at the Turkish parliament in Ankara, Turkey, May 30, 2017. REUTERS/Umit Bektas

ANKARA (Reuters) – Turkish President Tayyip Erdogan has spoken by phone with the leaders of Qatar, Russia, Kuwait and Saudi Arabia on lowering tension, presidential sources said, after Arab powers cut ties with Qatar, accusing it of supporting Islamist militants.

“The importance of regional peace and stability was underlined in the talks, as well as the importance of focusing on the path of diplomacy and dialogue to lower the current tension,” the sources said in a statement.

Saudi Arabia, Egypt, the United Arab Emirates and Bahrain severed their ties with Qatar on Monday, opening up the worst rift in years among some of the most powerful states in the Arab world.

Turkey has good relations with Qatar as well as several of its Gulf Arab neighbors and Deputy Prime Minister Numan Kurtulmus told reporters after a cabinet meeting on Monday that Ankara wanted to help resolve the dispute.

After the talks between Erdogan and Russian President Vladimir Putin, the Kremlin said late on Monday they called for dialogue and compromise.

Erdogan also spoke with Saudi Arabia’s King Salman and the emirs of Qatar and Kuwait. The sources said Erdogan would continue his contacts on the issue.

(Reporting by Tulay Karadeniz; Writing by Daren Butler; Editing by Nick Macfie)

Kuwait seeks to mediate Arab crisis over Qatar

An Eikon ship-tracking screen shows tanker traffic around Qatar over the last seven days in this June 6, 2017 illustration photo. REUTERS/Thomas White/Illustration

By Tom Finn and Sylvia Westall

DOHA/DUBAI (Reuters) – Kuwait’s ruler will travel to Saudi Arabia on Tuesday, hoping to heal a damaging rift between Qatar and powerful Arab states over the former’ s alleged support of Islamist militants and of political and religious rival Iran.

Emir Sheikh Sabah Al-Ahmad Al-Jaber al-Sabah will meet with Saudi Arabia’s King Salman and seek to resolve the worst infighting among the Arab world’s strongest and richest powers in decades.

Saudi Arabia, Egypt, the United Arab Emirates and Bahrain severed relations with Qatar and closed their airspace to commercial flights on Monday.

In a sign of the potential consequences for the Qatari economy, a number of banks in the region began stepping back from business dealings with Qatar. Saudi Arabia’s central bank advised banks in the kingdom not to trade with Qatari banks in Qatari riyals, sources said.

Oil prices also fell on concern that the rift would undermine efforts by OPEC to tighten production.

Qatar and the other Arab states fell out over Doha’s alleged support for Islamist militants and Shi’ite Iran — charges Qatar has called baseless.

It said, however, that it would not retaliate and hoped Kuwait would help resolve the dispute.

Foreign Minister Sheikh Mohammed bin Abdulrahman al-Thani told Qatar-based Al Jazeera TV that Qatar wants to give Kuwait’s ruler the ability to “proceed and communicate with the parties to the crisis and to try to contain the issue”.

Qatar’s leader, Sheikh Tamim bin Hamad Al-Thani, spoke by telephone overnight with his counterpart in Kuwait and, in order to allow Kuwait to mediate, decided to put off a planned speech to the nation, the foreign minister said.

Qatar has for years parlayed its enormous gas wealth and media influence into a broad influence in the region. But Gulf Arab neighbors and Egypt have long been irked by its maverick stances and support for the Muslim Brotherhood, which they regard as a political enemy.

Yemen, Libya’s eastern-based government and the Maldives – close allies of Qatar’s adversaries in the spat – also cut ties.

The United States, Russia, France, Iran and Turkey have all called for the row to be resolved through dialogue.

BANKS SHUN QATAR, FLIGHTS DIVERTED

Tightening pressure, Saudi Arabia’s aviation authority revoked the license of Qatar Airways and ordered its offices to be closed within 48 hours, a day after the kingdom, the UAE and Bahrain closed their airspace to Qatari commercial flights.

Flight tracker websites showed Qatar Airways flights taking a circuitous route mostly over Iran to avoid their neighbors.

Some Saudi Arabian and UAE commercial banks were also shunning Qatari banks, holding off on letters of credit, banking sources told Reuters on Tuesday.

With an estimated $335 billion of assets in its sovereign wealth fund and its gas exports earning billions of dollars every month, Qatar, however, has enough financial power to protect its banks.

Qatar’s stock market rebounded in early trade on Tuesday after plunging the previous day but the Qatari riyal fell against the U.S. dollar.

Kuwait’s emir, who has spent decades as a diplomat and mediator in regional disputes, hosted Sheikh Tamim last week as the crisis began brewing.

Monday’s decision forbids Saudi, UAE and Bahraini citizens from traveling to Qatar, residing in it or passing through it, instructing their citizens to leave Qatar within 14 days and Qatari nationals were given 14 days to leave those countries.

The measures are more severe than during a previous eight-month rift in 2014, when Saudi Arabia, Bahrain and the UAE withdrew their ambassadors from Doha, again alleging Qatari support for militant groups.

The United Arab Emirates said Qatar needed to carry out specific confidence-building measures and change its behavior.

“After previous experiences with the brother state, we need a frame for the future that will consolidate the security and the stability of the region,” UAE Foreign Minister Anwar Gargash wrote on Twitter overnight.

“We need to rebuild trust after broken pledges, we need a guaranteed roadmap,” he wrote.

But Qatari state TV broadcast images of Sheikh Tamim embracing the Muslim Brotherhood’s spiritual leader Sheikh Youssef al-Qaradawi — whose stay in Doha has for years irked Gulf states – as part of an annual Ramadan reception with Islamic clerics on Monday.

(Reporting by Ahmed Tolba in Cairo, Aziz El Yaakoubi, Tom Arnold, Hadeel Al Sayegh, William Maclean and Celine Aswad in Dubai, Writing by Noah Browning, Editing by Jeremy Gaunt)

China is behaving like a ‘bully’ in South China Sea: McCain

United States Senator John McCain speaks at a United States Studies Centre event in Sydney, Australia May 30, 2017. REUTERS/Jason Reed

By Colin Packham

SYDNEY (Reuters) – China is behaving like a “bully” with its militarization of islands in the South China Sea, Republican U.S. Senator John McCain said on Tuesday, activity Washington must confront with its allies to find a peaceful solution.

In a speech in Sydney, McCain said China was asserting itself globally, best illustrated by militarizing artificial islands in the South China Sea, a claim repeatedly rejected by Beijing.

“I think it is very clear that the Chinese by filling in these islands are militarizing them and that is in violation of international law,” the Arizona senator said.

McCain’s comments are set to escalate tensions between the United States and China just days before delegates from both countries are scheduled to attend a regional security conference in Singapore.

China claims most of the resource-rich South China Sea, through which about $5 trillion in ship-borne trade passes every year. Neighbors Brunei, Malaysia, the Philippines, Taiwan and Vietnam also have claims on the strategic waterway.

The United States estimates Beijing has added more than 3,200 acres (1,300 hectares) of land on seven features in the South China Sea over the past three years, building runways, ports, aircraft hangars and communications equipment.

To counter the perceived Chinese aggression, the United States has conducted so-called freedom-of-navigation exercises, the most recent of which was conducted by a U.S navy warship near Mischief Reef in the disputed Spratly Islands.

At the same time, U.S. President Donald Trump is seeking China’s cooperation to rein in ally North Korea’s nuclear and missile programs.

Allies such as Australia have so far refused to participate in freedom-of-navigation exercises in the fear of alienating Beijing.

While McCain stopped short of calling on Australia to undertake the exercises, the former U.S. presidential nominee said allies must work together to find a peaceful solution.

(Editing by Nick Macfie)