The four Arab states that cut ties with Qatar last month said on Thursday that Doha's refusal of their demands to fix the Gulf crisis proves they support terrorism.
Reuters reports Saudi Arabia, the United Arab Emirates, Egypt, and Bahrain released a joint statement saying their first list of 13 demands is now void and they plan on implementing new political, economic and legal steps against Qatar, in a "timely manner."
Some of the former demands asked Qatar to stop supporting the Muslim brotherhood, shutdown their Al Jazeera TV channel and close a Turkish military base in Doha, and limit its ties with Iran.
The four states are accusing Qatar's government of sabotaging diplomatic efforts to solve the problem.
The legal steps to be implemented against Qatar are said to only be aimed at the government and not the Qatari people. The exact actions to be taken have not been made clear.
Secretary of State Rex Tillerson will fly to the Gulf on Monday to try and bring an end to the crisis.
U.S. State Department Spokeswoman Heather Nauert said Washington is growing "increasingly concerned that the dispute is at an impasse" and may drag on for weeks and months.
Defense Secretary James Mattis emphasized the "importance of de-escalating tensions ... so all partners in the Gulf region can focus on next steps in meeting common goals."
There are 10,000 U.S. troops at the large airbase in Qatar, which Mattis says is vital for the campaign against the Islamic State.