DUBAI, United Arab Emirates (AP) — Moody's Investors Service says the three-month-old diplomatic dispute between Qatar and other Arab states has created uncertainty across the Gulf region and is credit negative for all the countries involved.

The report Wednesday says persistent tensions between Qatar and its neighbors will have the biggest impact on Qatar and the island-nation of Bahrain, which has been roiled by low-level unrest since 2011.

The rating agency estimates Qatar has injected close to $40 billion, or close to 12 percent of its financial reserves, to support the economy in the first two months of the standoff.

The dispute erupted in early June when Saudi Arabia, the United Arab Emirates, Bahrain and Egypt severed all diplomatic and transport links with Qatar, accusing it of fomenting unrest in the region and backing extremist groups.