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The United States and Qatar Tuesday signed a Memorandum of Understanding on the steps to be taken by Doha to stop funding of terrorism, a demand which is being made by the four Arab nations.

The MoU was signed during the day-long visit of US Secretary of State Rex Tillerson, who is touring the Gulf nations in a bid to find a solution to the diplomatic row involving Qatar.

Senior US adviser R.C. Hammond told media in Doha that “Qatar and the United States have signed a memorandum of understanding between the two counties outlining future efforts Qatar can take to fortify its fight against terrorism and actively address terrorism funding issues.” He added that “this is a hopeful step forward.”

In early June Saudi Arabia , UAE , Bahrain and Egypt had cut all diplomatic ties with Qatar accusing it of funding terrorism and creating instability in the region , a charge which Doha denies.

The US believes that any escalation in the tension in the Middle East may hamper its effort to fight the ISIS and may also encourage realignment of loyalties which Iran can leverage to its advantage.

Meanwhile , fresh tensions have erupted over a leaked secret document on CNN involving the regional Arab powers. The secret agreement signed in 2013-14 also known as the Riyadh Agreement allegedly is a confidential agreement between Qatar and other Gulf Cooperation Council (GCC) States signed by the respective Head of States in which all parties had agreed to stop terror funding and avoid interference in each other’s internal affairs.

According to Saudi, UAE and Bahrain , the leaked documents only suggest that Qatar has not complied with the letter and spirit of the agreement.

US Secretary of State Rex Tillerson is scheduled to travel to Saudi Arabia on Wednesday to further discuss the ongoing efforts to resolve the month-long Gulf crisis.