Qatar warns US of 'serious repercussions' over Jerusalem

Sheikh Tamim bin Hamad Al-Thani "warned of the serious repercussions of this step, which would further complicate the situation in the Middle East and negatively affect the security and stability in the region," read a statement from the ministry, quoting the emir in a phone call with Trump.

An estimated 20,500 Palestinians live in Qatar, which has a population of around 2.7 million.

The gas-rich emirate, which is estimated to be the richest country in the world per capita, in October announced it would fund a new headquarters for the Palestinian Authority in Gaza to support a reconciliation deal between rivals Hamas and Fatah.

Qatar has long been considered a supporter of Hamas and has funded much of the reconstruction of Gaza after the last war with Israel in 2014.

It is also home to the former leadership of Hamas, which is considered a terrorist organisation by the United States.

In June, Saudi Arabia and its allies cut diplomatic and trade ties with Qatar, accusing the emirate of supporting Islamist extremists. Qatar denies the allegation.