Well . . . that escalated quickly.
In truth there's so many rumours flying around it's hard for me to figure out what exactly is going on. I think this is primarily the same issues that caused the problems in 2014 -- Qatar doing its own thing and not following the other GCC countries. At the time UAE, Saudi and Bahrain pulled their ambassadors and it was months before they returned. I don't think everyone buried the hatchet on that and so it was simmering. Meanwhile Qatar continued doing its own thing. I'm guessing the recent events (the hack of the Qatar News Agency publishing that speech supposedly by the Emir, the hack of the UAE Ambassador to the US's emails) were just the pretext for outrage by both sides.
Meanwhile the mood here are a bit nervous but otherwise life is going on as normal. People are watching the news and have been stocking up on groceries but there hasn't been a panic. Qataris will be the ones to suffer more in the long-term if they have to leave the other GCC countries and return to Qatar, and this will no doubt hurt business on both sides.
I just don't know what it is Saudi/UAE are looking for. What do they want?