A Qatari woman walks in front of the city skyline in Doha, Qatar. Saudi Arabia and three Arab countries severed ties to Qatar this week. Photo / AP
A huge ransom paid to secure the release of kidnapped members of the Qatar Royal family was the final trigger which sparked Saudi Arabia and others to sever ties with the isolated nation.
The ransom, which was around $1 billion, was believed to have been paid to militias with close ties to Tehran, the Financial Times has revealed.
The news comes as non-profit policy organisation the Counter Extremism Project revealed the full extent of how Qatar has been financing and harbouring a dozen terrorists and operatives who have been living freely - and in some cases, in luxury - within oil-rich Qatar.
It also comes as US investigators have blamed Russian hackers for breaching Qatar's state news agency and planting a fake news report that helped fuel the crisis.
The Middle East was plunged into its biggest diplomatic crisis in years after Saudi Arabia and six other countries cut ties with Qatar following weeks of tension in the region.
On Monday, Saudi Arabia, Bahrain, Egypt, the United Arab Emirates, Yemen, Libya and the Maldives all severed diplomatic ties with Qatar, which has been accused of supporting Islamic groups, including some backed by Iran.
They accuse the tiny Gulf state of harbouring extremist groups and suggested Qatari support for the agenda of Saudi Arabia's regional archrival Iran.
As well as cutting diplomatic relations and ordering Qatari citizens to leave their countries within 14 days, the Gulf states and Egypt banned all flights to and from Qatar.
UAE carriers Emirates, Etihad, flydubai and Air Arabia, as well as Saudi Airlines had all announced the suspension of flights to and from Qatar as of Tuesday morning.
And while tensions have been simmering across the region for months, the ransom payment was said to be the final straw.
RANSOM OUTRAGE
Gulf states were reportedly outraged by the ransom paid by Doha earlier this year to secure the release of a hunting party, which included members of the Qatari royal family, kidnapped in southern Iraq.
According to the Financial Times, the ransom was paid in April to secure the release of the hunting party, but the move didn't go down well with its neighbours.
"The ransom payments are the straw that broke the camel's back," a Gulf expert told the Financial Times.
The group of 26 falcon hunters were kidnapped in December 2015 after entering southern Iraq, with 11 members belonging to Qatar's al-Thani ruling family.
Shiite militias closely allied with Iran and members of the al-Qaeda-affiliated group Tahrir al-Sham were reportedly behind the kidnap.
The unnamed official told the Financial Times that Qatar spent about a billion dollars on the "crazy deal".
The two groups are among the most black-listed across the Middle East and Qatar's neighbours saw the deal as fuelling instability across the region.
'FINANCING, HARBOURING TERRORISTS'
Meanwhile New York-based the Counter Extremism Project has released two detailed reports detailing the extent to which Qatar is sheltering and financing extremists and terrorists.
In its latest reports, Qatar: Extremism and Counter-Extremism andQatar, Money and Terror : Doha's Dangerous Policies, the CEP said Qatar gives financial and material support to internationally-designated terrorist groups such as Hamas and the Nusra Front.
The CEP said Qatar "knowingly permits internationally-designated or wanted terrorist leaders and financiers to operate within its borders" and in doing so undermined regional and international security.
"The Qatari government has lent support to al-Qaeda in the Arabian Peninsula, Hamas, the Muslim Brotherhood, the Nusra Front, and the Taliban - through direct money loans, ransom payments, and the transfer of supplies," the CEP said.
"Qatar is also currently harbouring at least 12 sanction-designated or wanted individuals, including former Hamas leader Khaled Meshaal, Muslim Brotherhood ideologue Yusuf al-Qaradawi," the CEP said.
Three UN sanctioned Taliban operatives and at least seven al-Qaeda financiers are also understood to be living in the country.
"Although these individuals have been publicly sanctioned by the United States or United Nations, or are the subject of INTERPOL arrest warrants, they are able to live with impunity-and in some cases, in luxury-within Qatar," it said.
The CEP said Qatar is obligated to end terror/terror financing as a signatory to the 2014 Jeddah Communique-Qatari and called on the state to arrest, expel, or cut off support to sanction-designated or wanted individuals in the country.
RUSSIA HACKING LINK
Meanwhile the planting of a fake news report is believed to have further fuelled the crisis.
US intelligence officials believe Russian hackers planted the false story that led Saudi Arabia and several allies to sever relations with Qatar, according to CNN.
FBI experts visited Qatar in late May to analyse an alleged cyber breach that saw the hackers place the fake story with Qatar's state news agency, the US broadcaster said.
Saudi Arabia then cited the false item as part of its reason for instituting a diplomatic and economic blockade against Qatar, the report said.
Qatar's government said the May 23 news report attributed false remarks to the emirate's ruler that appeared friendly to Iran and Israel, and questioned whether US President Donald Trump would last in office.
Qatari Foreign Minister Sheikh Mohammed Bin Abdulrahman al-Thani told CNN that the FBI has confirmed the hack and the planting of fake news.
"Whatever has been thrown as an accusation is all based on misinformation and we think that the entire crisis is being based on misinformation," he told CNN.
ANGRY HISTORY
It wouldn't be the first time Gulf countries have reacted with such anger towards its neighbour.
Gulf countries previously recalled their ambassadors from Qatar in 2014, ostensibly over its support for the Muslim Brotherhood, however Monday's move goes even further.
Saudi Arabia and its Gulf allies may have felt emboldened by Mr Trump's visit, which saw the new president clearly align US interests with Riyadh and lash out at Iran.
Qatar has an independent streak that has often angered its neighbours and the emirate has directly and indirectly supported Islamist groups across the Arab world, including the Muslim Brotherhood.
Qatar has also been criticised for supporting Islamist rebels in Syria, and in 2013, the Afghan Taliban opened a Doha office.
TRUMP BACKING CUT
The furore comes as US President Donald Trump weighed into the saga, backing Saudi Arabia and its allies after they cut ties with Doha over claims it supports terrorism.
In a surprise move against a key US ally, Mr Trump suggested Qatar - home to the largest American air base in the Middle East - was funding extremism as he tacitly backed the diplomatic blockade of the emirate.
The President tweeted that it was good to see his visit to Riyadh was paying off and he hoped the move would be the beginning of the end for terrorism.
So good to see the Saudi Arabia visit with the King and 50 countries already paying off. They said they would take a hard line on funding...
Trump's broadside came as Kuwait's ruler flew to Saudi Arabia in a bid to resolve the diplomatic crisis.
Speaking to the BBC, Qatar's foreign minister Sheikh Mohammed bin Abdulrahman Al-Thani gave the first response to Trump's tweets, denying any Qatari funding "of terrorism".
Kuwait did not join fellow Gulf countries in taking measures against Doha, and its Emir Sheikh Sabah al-Ahmad al-Sabah went to the Saudi city of Jeddah for talks to resolve the crisis with King Salman.