AGP Executive Report

Hormuz Tolls Clash: Iran says it’s negotiating with Oman on a fees-for-passage system for the Strait of Hormuz, even as the US warns it’s “unacceptable” and Rubio tells NATO allies no country should accept a “tolling system” in an international waterway. Diplomacy vs. Force: Pakistan’s Army chief Asim Munir is in Tehran for talks as Iran’s foreign ministry says gaps with Washington are “deep and significant,” while US media reports fresh strike planning could resume. Markets on Edge: Oil prices bounced on hopes of progress, but investors remain skeptical, keeping volatility high. EU Sanctions Move: The EU expanded sanctions to target actions linked to maritime disruptions in the Gulf. Oman Business: EDECS and Assarain won an EZAD dry port and veterinary quarantine contract, and O-Green marked financial close on a 93MW Suhar solar project. Sports: Nepal crushed the USA by 122 runs in ICC League-2, while Oman finished sixth at the GCC Games with 29 medals.

Hormuz Peace Talks Intensify: Qatar rushed mediators to Tehran as US-Iran negotiations near a climax, with Pakistan still named the key go-between; US officials say there’s “slight” movement but warn any deal is off the table if Iran pushes a permanent toll system or demands enriched uranium handover. Shipping Pressure & Oil Markets: Iran claims more vessels are slipping through the Strait of Hormuz while the US blockade remains, keeping global energy prices jumpy—WTI and Brent both edged up on the day, but the week still ended lower as Memorial Day travel lifts US fuel demand. Oman’s Domestic Push: Oman issued a new urban planning law under Royal Decree No. 58/2026 to back sustainable development and Vision 2040 goals. Oman in Focus Beyond Politics: Oman’s cricket team departed for Singapore qualifiers for the Asian Games, while Oman also signed financing for its first underground copper mine in Dhofar.

Hormuz Tolls Clash: Iran and Oman are reportedly testing a fee system for ships in the Strait of Hormuz, even as US officials warn it would be “not opening” an international waterway—Trump says he opposes tolls and Rubio calls any such plan unworkable for a deal. US Naval Pressure: US Marines boarded and redirected an Iranian-flagged tanker in the Gulf of Oman as sanctions enforcement continues, while shipping activity remains sharply reduced. Diplomacy vs Escalation: Yemen’s leadership renewed support for Iran and backed Tehran’s right to defend and control Hormuz, as US-Iran talks stay fragile and full agreement remains unclear. Trade Boost for Oman: The UK-GCC Free Trade Agreement is set to cut about $779m in annual duties, with Oman among the GCC states. Oman Connectivity: Oman Air launches direct Muscat–Tashkent flights from 2 June, and Etihad adds Salalah services ahead of Khareef. Local Discovery: Archaeologists found rare prehistoric rock carvings in Oman’s Hajar Al-Sinanat region.

Hormuz Tensions, Oman in the Mix: Iran is in talks with Oman over a “permanent toll” system for Strait of Hormuz traffic, as the US keeps boarding and redirecting tankers and President Trump reiterates opposition to tolls, while oil prices swing on shifting Iran–US signals. Markets & Energy: Gulf stocks rebounded on hopes of a deal and firmer oil, and Gulf Mercantile Exchange hit a record single-day Oman crude volume of 21.78 million barrels. Oman’s Connectivity & Tourism: Salalah Airport welcomed Etihad’s first seasonal flight from Abu Dhabi for Khareef Dhofar 2026, with two weekly services starting now. Finance: Oman Arab Bank priced a $400m AT1 bond at a 6.75% fixed resettable coupon, drawing over $1bn in demand. Local Governance: Muscat’s governor patronized a symposium on boosting economic development in governorates, pushing decentralised investment readiness. Royal Decrees: His Majesty Sultan Haitham issued three decrees covering urban planning, sports bodies, and health education reforms.

UK-GCC Trade Boost: The UK and the six GCC states have concluded a modern Free Trade Agreement, with Britain calling it a major win for exporters and investors, and projecting a near 20% lift in GCC-UK trade (about £15.5bn annually), including tariff cuts on most UK goods. Hormuz Pressure, Diplomacy on the Side: In the Gulf of Oman, the US military boarded and redirected an Iranian-flagged tanker suspected of trying to breach the blockade, as Trump says Iran talks are “right on the borderline” between a deal and renewed strikes, while Iran says it is reviewing the latest US proposal via Pakistan mediation. Shipping Still Choked: Despite cautious signs of movement, more than 160 tankers remain stranded in the Persian Gulf, underscoring how Iran’s control is still tightening the energy bottleneck. UAE Bypasses the Risk: ADNOC says a second Hormuz-bypass crude pipeline is nearly 50% complete, targeting 2027 operations to protect exports via Fujairah. Oman Business & Tech: Oman’s capital markets keep pushing sustainability, with MSX signing a cooperation deal to expand carbon-market and green finance work, while Dhofar roadworks roll out AI-powered asphalt paving.

Hormuz Pressure: Iran’s foreign ministry says it is seeking a mechanism with Oman for “sustainable security” in the Strait of Hormuz, as the waterway remains effectively closed and tensions keep energy markets on edge. US Blockade Moves: The US military boarded and searched an Iranian-flagged tanker in the Gulf of Oman, then redirected it after suspicion of trying to breach the blockade—at least the fifth such boarding since the campaign began. UAE Diversion Plan: The UAE’s new Hormuz-bypass crude pipeline is now about 50% complete, with ADNOC saying global oil flows may take months to recover after the war ends. UK-GCC Trade Boost: Britain signed a long-awaited trade deal with the GCC, removing hundreds of millions of pounds in tariffs over time, including on food and medical equipment. Oman Focus: Oman condemned the attack on the Islamic Center in San Diego and screened a documentary on Dr Thoms, while also launching an AI-powered autonomous asphalt paving technology in Dhofar and pushing trusted digital transformation in health at the World Health Assembly in Geneva.

Hormuz Pressure Escalates: The US seized an Iran-linked VLCC, the Skywave, in the Indian Ocean carrying over 1m barrels of Iranian crude—its third such grab since February—while US intelligence says it has identified at least 10 mines in the Strait of Hormuz, raising risks for shipping. Diplomacy vs. Tolls: Iran’s lawmakers call the strait a “permanent asset” and Tehran has launched a new transit/toll framework, as a South Korean tanker (Universal Winner) passes after talks with Iran. Oman in Focus: Oman debuted first AI-powered self-paving asphalt in Dhofar, while Muscat also saw a crackdown with 37 expats arrested for labour and residency violations. Local Governance & Safety: Oman’s Charitable Organisation launched a 2026–2028 development plan, and Royal Oman Police warned against carbon monoxide dangers inside running vehicles. Finance & Trade: The US Treasury agreed a $275m settlement with India’s Adani Enterprises over alleged Iran-linked LPG sanctions violations.

Oman in Global Science & Health: Oman signed a scientific and technical cooperation deal with CERN in Geneva, opening paths for Omani scientists and students in high-energy physics, computing and AI. It also took part in WHA79, stressing stronger health emergency readiness and digital systems. Digital Push at Home: Oman’s government is rolling out AI support for public services using the local “Mueen” language model, aiming to cut routine work and speed up official communication. Sustainability Spotlight: Oman Botanic Garden earned LEED Platinum for four facilities, while Oman Sustainability Week saw new energy-efficiency agreements for government buildings and a green data-centre development pact. Regional Sports: Oman’s athletics team returned from the GCC Games to a heroes’ welcome after a medal haul, and the Gulf Cup draw set Oman in a tough Group A with Saudi, Iraq and Kuwait. Cybercrime Crackdown: Interpol’s “Operation Ramz” arrested 201 people across MENA for phishing and malware scams, with Oman among participating countries.

Consumer Watch: Oman’s Consumer Protection Authority pushed back on social-media claims of sharp building-material price hikes, saying the increases being shared are inaccurate and citing smaller moves for iron (about +12% from February to May) and cement (+18%), while warning suppliers against exploitation and saying it has already acted against violating establishments. Middle East Markets: Gulf equities slid again, with Dubai’s main index falling for a seventh straight session as investors weighed regional security risks after drone incidents near the UAE’s Barakah plant. Iran-US Tension: US President Donald Trump said he postponed a “very major” planned attack on Iran after Gulf leaders asked for more time for talks, while insisting the US remains ready for a large-scale assault if no deal comes. Hormuz Trade Shift: With the Strait of Hormuz crisis dragging on, UAE firms are accelerating plans to reroute exports via Fujairah and build more bypass capacity. Oman Tech Push: Omantel’s Otech says Oman’s AI growth is moving from apps to local cloud, data centres, cybersecurity and AI computing infrastructure.

Middle East Tension: Trump says he’s holding off a planned strike on Iran after Gulf leaders asked for more time, but warns the US is ready for a “large scale assault” if peace talks fail. Oil Watch: The IEA chief warns commercial oil inventories are being drained fast, leaving only weeks of buffer as Hormuz disruption keeps prices jumpy. US-Iran Diplomacy: Iran says it sent revised peace terms via Pakistan and is also discussing a mechanism for Strait of Hormuz navigation with Oman. Sanctions Fallout: India’s Adani Enterprises will pay $275m to the US Treasury to settle alleged Iran sanctions violations, while the US also moves to dismiss related fraud charges. Oman Spotlight: Oman presents a comprehensive health-systems vision at the 79th World Health Assembly, and Oman Sustainability Week continues to push clean-energy and blended-finance momentum. Sports: Nepal beat Scotland by six wickets in League 2, climbing to fifth.

Oman Economy & Finance: The Oman Investment Authority says it expects nearly OMR 3 billion profit in 2025, with a 14.6% return on investment, after executing 24 exits worth over OMR 2.8 billion. Energy & Industry: Nama and O-Green signed a 2.7 GW continuous renewables deal across Mahout and Duqm, aiming for around-the-clock clean power. Gulf Security & Shipping: Tensions around the Strait of Hormuz keep oil markets jumpy as Trump warns Iran the “clock is ticking,” while Iran pushes new pressure points—now including talk of charging fees for subsea internet cables. Regional Diplomacy: Oman condemned the drone strike that hit the UAE’s Barakah nuclear plant, calling it a hostile and escalatory act and urging dialogue. Sports: Bahrain surged at the GCC Games with a big athletics haul, while Oman’s athletes continue to chase medals. Eid Timing: Dar al-Ifta confirmed Dhul Hijjah begins May 18 and Eid al-Adha is May 27.

Seeb’s Challenge: HH Sayyid Shihab bin Tarik Al Said says Seeb Club’s recent domestic and continental success is built on patience and a long-term project—but staying on top is “the real challenge,” demanding stronger admin, finance, tech and fan support. Oman Trade & Logistics: Sharjah launched an integrated logistics corridor with Oman, with first shipments moving from Port Khalid to Sohar Port via Khatmat Malaha, aiming to keep supply chains moving through land-sea integration. Eid Al Adha Calendar: Oman has confirmed Dhul Hijjah starts Monday, May 18, with Eid Al Adha on Wednesday, May 27. Prices & Daily Life: Oman’s inflation hit 3.2% in April, with vegetables up 25% driving much of the rise. Renewables Push: Nama Power and O-Green awarded a 2.7GW continuous renewable energy Power Purchase Agreement for Mahout and Duqm, combining wind, solar and battery storage. Green Corridor in the UAE: Dubai Customs says its Oman-linked Green Corridor is sustaining trade flows despite disruptions.

Strait of Hormuz Tensions: India has told the UN that targeting commercial shipping and endangering civilian crews is “unacceptable,” after an India-flagged vessel was attacked off Oman earlier this month; the UN meeting also comes as Iran pushes a controlled shipping plan and the US says it has redirected dozens of ships to enforce its blockade. GCC Games Doha 2026: Qatar keeps stretching its lead, hitting 96 medals overall, while Oman climbs with more podium finishes and is now in the medal race. Oman Homes & Comfort: A local lifestyle feature highlights how Oman residents are making “smart small spending” changes—materials, lighting, and layout tweaks—to improve everyday comfort. Oman Safety Alert: Royal Oman Police reported four deaths from carbon monoxide poisoning inside a running vehicle, urging people not to sleep in cars with engines on. Energy & Industry Shift: Separate coverage points to Oman’s next economic pivot—electricity and power projects—signalling a move from exporting energy to building industry around it.

Carbon Monoxide Tragedy: Royal Oman Police say four Asian nationals died after inhaling carbon monoxide inside a vehicle in Al Musannah while the engine was running, urging people never to sleep in enclosed spaces with engines on. Hormuz Pressure: US Central Command says it has redirected 78 ships and disabled four to enforce its blockade, while Iran-linked shipping continues to find ways through the Strait of Hormuz as tensions keep spiking. Diplomacy, Yemen: UN chief António Guterres praised Jordan for helping broker a deal to release over 1,600 Yemeni detainees, with Oman and Switzerland hosting earlier rounds. Oman Economy & Finance: Oman’s insurance sector posted growth in 2025, and MSX-listed firms reported higher first-quarter profits, even as the main index dipped below 8,000 points. Local Life: Oman’s youth-led tourism projects in Al Jabal Al Akhdar are drawing visitors, pairing heritage with small business initiatives.

UN Yemen Talks: The UN says a deal reached in Amman will see the release of more than 1,600 Yemen detainees, with António Guterres urging quick implementation with the ICRC so families can reunite. Strait of Hormuz Pressure: Fresh maritime incidents keep the spotlight on the Gulf of Oman and Hormuz—an Indian cargo ship reportedly sank off Oman after a suspected drone attack, while a separate vessel was seized near the UAE and is said to be headed for Iranian waters. Diplomacy vs Deadlock: Iran’s foreign minister Abbas Araghchi again blamed “lack of trust” for stalled talks with the US, while Trump and Xi’s recent meetings still leave the wider war-risk unresolved. UAE Energy Workaround: The UAE is accelerating pipeline construction to double crude export capacity via Fujairah, aiming to reduce reliance on Hormuz. Oman-Linked Spotlight: India and Oman co-hosted a UN event on INSV Kaundinya, highlighting shared maritime heritage. Sports (GCC Games): Bahrain and Oman open their volleyball medal bid in Doha, with Bahrain chasing momentum after a big medal haul.

Strait of Hormuz Flashpoint: Iran and the U.S. traded sharper words as tensions spiked again—reports say a ship was seized near the UAE and another sank off Oman, while Iran’s FM Abbas Araghchi said Tehran has “no trust in Americans” and insists Hormuz is open only for vessels not linked to countries fighting Iran. U.S.-China Diplomacy: After Trump’s summit with Xi, both sides said the strait must remain open, but no concrete deals were announced as talks with Iran stay stalled. Gulf Energy Workarounds: The UAE moved to reduce Hormuz dependence, fast-tracking a West-East pipeline to double export capacity via Fujairah by 2027. Oman Health: Khoula Hospital launched a Spine Endoscopy System and signed funding for cochlear implant surgeries. Markets: Qatar’s QSE slid on cautious sentiment and oil-linked worries, while India’s markets dipped as crude prices rose.