LONDON, June 29 (Reuters) - The cost of insuring exposure to Qatari debt rose on Thursday to the highest since February 2016 as the diplomatic crisis that has isolated the tiny Gulf state rumbled on.
Five-year credit default swaps rose 2 basis points (bps) from Wednesday's close to 120 bps according to IHS Markit data. This is more than double the level where the CDS were trading at the start of June when Qatar's neighbours, including Saudi Arabia and the United Arab Emirates, severed diplomatic and travel ties with it.
Gulf Arab states are considering fresh sanctions on Qatar and could ask trading partners to choose between working with them or Doha, the United Arab Emirates ambassador to Russia said in an interview with The Guardian newspaper on Wednesday. (Reporting by Claire Milhench; editing by Sujata Rao)