The crisis is a major diplomatic test for the United States, which is a close ally of countries on both sides.
President Recep Tayyip Erdogan reaffirmed Turkey's support for Qatar on Friday and called for the blockade against Doha by several Arab states to be completely lifted. Trump said that after his recent trip to the Middle East, "nations came together and spoke to me about confronting Qatar over its behavior".
"Qatar has made efforts to prosecute significant terrorist financiers".
Qatar dismissed the terror listing as part of "baseless allegations that hold no foundation in fact", the AP says, standing by earlier defiant statements by its top diplomat that Arab nations had no "right to blockade my country".
But turning up the heat on Qatar so soon after the countries cut off diplomatic ties could imperil the future of the USA military's largest outpost in the Middle East - an air base 20 miles south of the capital Doha that hosts an estimated 11,000 military personnel.
The U.S. base in Qatar happens to be the hub for anti-ISIS activity.
The U.S. expects the countries to "immediately take steps to de-escalate the situation and put forth a good faith effort to resolve the grievances they have with each other", Tillerson told reporters at the State Department.
Gorkha Janmukti Morcha supporters hold massive protest demanding 'Gorkhaland'
Despite the government amending its notification, exempting the Hills, the protests snowballed into demands for a separate state. The Gorkha Janmukti Morcha (GJM) has called an all-party meeting in Darjeeling on Tuesday to discuss the next course of action.
JEDDAH: US Secretary of State Rex Tillerson said Qatar must do more, "more quickly" to combat extremism. "Others must also continue to eliminate factions of support for violent organizations within their own borders".
"The investigation team confirmed that the hack was carried out using innovative technological methods by exploiting an electronic gap on the website of the Qatar News Agency", the report said.
But, alongside this admonition for Qatar, Tillerson also noted that other countries must do more - and urged Riyadh and its allies to soften their embargo. The comments from Qatar came a day after Sheikh Mohammed rejected any interference in its foreign policy and said his country would never "surrender".
However, the Qatari foreign minister downplayed the likelihood of military conflict.
"They will not have a positive impact on the region but a negative one", the minister said while on a visit to Germany.
"We have moved from severing diplomatic relations to a comprehensive blockade of global conventions and human rights conventions, not only for Qataris but also for citizens of the (Persian) Gulf Cooperation Council countries", Marri told a press conference.