AGP Executive Report

Strait of Hormuz Tensions: President Donald Trump blamed Iran for downing a U.S. Army Apache helicopter near the Strait of Hormuz and said the U.S. “must” respond, as Iran’s foreign minister Abbas Araghchi warned foreign forces near Iran’s territory face constant risk and urged them to leave. Oman Coast Rescue: The two pilots were reported safe and uninjured after a U.S. Navy drone boat (Saronic Corsair) carried out a first-of-its-kind sea rescue off Oman’s coast, with the cause of the crash still under investigation. Regional Fallout: The incident comes amid a shaky ceasefire after Iran and Israel exchanged fire, adding fresh pressure on efforts to reopen the vital shipping route. Energy Markets Watch: Oil and gold prices swung on the renewed risk, with markets bracing for possible supply disruptions tied to Hormuz uncertainty. Local Oman Updates: Oman also reported a drone attack on Salalah port that wounded a foreign worker and caused limited damage.

Hormuz Pressure on Oman: The White House is escalating pressure on Oman to sever diplomatic ties with Iran, citing intelligence that Muscat may have helped Tehran impose transit fees on Strait of Hormuz shipping—an issue that could raise global fuel costs if tolling takes hold. Maritime Security in Oman Waters: A Palau-flagged tanker, MT Marivex, was hit in the Gulf of Oman; 24 Indian crew were evacuated safely with help from Omani authorities after a US F/A-18 disabled the vessel for allegedly violating the blockade. Energy Markets: Oil prices slipped after Iran and Israel said they halted attacks, though both warned hostilities could resume, keeping supply-route fears alive. Infrastructure & Investment: Track installation has started on Oman’s Hafeet Rail project linking Sohar Port to the UAE rail network. Oman also signed RO 2.9bn in Duqm Special Economic Zone deals, including major green hydrogen and ammonia plans. Environment & Governance: A new report with Oman’s Environment Authority says stronger environmental governance can improve investor confidence and long-term economic resilience. Heat Alert: Oman continues to face intense summer temperatures, with guidance to avoid direct sun and stay hydrated.

Strait of Hormuz Security: The U.S. disabled the Palau-flagged tanker MT Marivex in the Gulf of Oman after it allegedly tried to evade the Iran blockade; a U.S. F/A-18 fired a precision munition, and all 24 Indian crew were evacuated safely with help from Omani authorities. Oman Weather Watch: Oman is bracing for a hotter, drier summer, with temperatures staying above seasonal averages and rainfall below normal across many regions through June to August. Regional Tensions: Israel and Iran appeared to pause or step back from further strikes after renewed exchanges, though both warned they would retaliate if provoked. Energy Markets: OPEC+ agreed to raise July oil output by 188,000 barrels per day, even as Hormuz-related disruptions keep traders focused on supply risks. Business & Trade: Changan’s new energy vehicle brand DEEPAL launched in Oman, while Oman and Kuwait discussed ways to deepen cooperation, including in cybersecurity and standards.

Middle East Energy Shock: Oil prices jumped more than $4 after fresh Israel-Iran exchanges, with Brent above $97 and WTI above $94 as markets feared longer disruption to crude flows through the Strait of Hormuz. Hormuz Transit Rules: Iran’s ambassador said the strait will reopen under new conditions set by Iran and Oman, including a transit fee—while the US has warned Oman against any toll plan. OPEC+ Output Move: OPEC+ agreed to a fourth straight July quota increase of 188,000 bpd, but analysts say it may not ease supply stress while Hormuz remains constrained. Oman Business & Economy: Oman marked World Accreditation Day, highlighting accreditation’s role in boosting SMEs and trust in quality systems. Energy in Oman: Oman reported natural gas output growth of 4.6% to 18.7721bn cubic metres by end-April 2026. Water Infrastructure: Barka issued EoIs to sell and dismantle two SWRO desalination plants after their water purchase agreements expired. Sports & Culture: Al Zubair and Fuminelli finished sixth and seventh in Misano’s International GT Open; Oman’s Youth Creativity Award winners were recognised in the Gulf’s World of Data event.

Oman Energy & Industry: Nama Power and Water Procurement Company has invited bids for project management and supervision for Oman’s 300MW Marsa Solar IPP, with submissions due July 26. Oman Climate Action: Muscat Municipal Council reviewed progress on net-zero efforts, with the Oman Net Zero Centre outlining plans to cut emissions and build a carbon market platform. Oman Environment & Food Safety: The Environment Authority launched the Oman Environment Atlas for planning and sustainable development, while Oman marked World Food Safety Day with renewed focus on traceability and safer food systems. Oman Governance: Majlis Ash’shura will discuss a proposed draft law on alternative penalties and measures. Oman Business & Services: Kafaah Competence Programme for Manufacturing was launched to help factories adopt lean improvements and pursue Green Belt certification. Regional Energy Shock: OPEC+ agreed to raise July oil output quotas by 188,000 bpd despite the Strait of Hormuz closure, with analysts calling it largely symbolic while shipping remains constrained. Foreign Affairs: Oman reaffirmed solidarity with Bahrain after an Iranian missile and drone attack. Sports: Nepal beat Oman by 8 wickets to reach the Asian Games Men’s Qualifier final.

Cybercrime Crackdown: Oman has issued strict new penalties under Royal Decree No. 61/2026, including jail and heavy fines for online begging and for promoting or selling unlicensed medicines, with doubled punishment for adulterated or expired products. Digital Morality Offences: The same law targets online gambling and pornographic content, with harsher terms when children or people lacking legal capacity are involved. Energy Cooperation: OQEP signed an MoU with Libya’s Investment Authority to boost oil and gas investment and explore joint opportunities. Legal Travel Ease: Sri Lanka will grant free tourist visas to Omani citizens from May 25, 2026 via the ETA system for up to 30 days. Sports (Oman in focus): Oman’s cricket campaign at the Asian Games Qualifiers ended after defeats to Nepal, including an 8-wicket loss in the semi-final. Weather Watch: Oman’s regionally linked heat remains intense, with authorities warning about extreme temperatures and health risks.

Strait of Hormuz Tensions: Oil prices slipped as traders saw a lower chance of renewed US-Iran escalation, even as the standoff keeps shipping and markets on edge. Regional Security: The US said it intercepted Iranian missiles and drones aimed at the Strait of Hormuz, Bahrain and Kuwait, while Iran-linked claims and denials continue to trade headlines. Oman Weather: NCM forecast generally clear skies with rising temperatures, plus night humidity and possible fog/mist on some coastal areas. Oman Economy & Markets: Muscat Stock Exchange kept trading above OMR 1bn for a fourth straight month in May, despite a first monthly dip in the main index. Labour & Rights: Oman strengthened ties with the ILO in Geneva and retained its Tier 3 position in the 2026 Global Rights Index. Sustainability & Energy: Oman pushed climate action and green aviation, while work has started on the Hafeet Rail track linking Oman to the UAE. Mobility & Tourism: Oman is expanding EV charging at hotels to support electric mobility and visitor services. Sport & Culture: Oman Cricket won ICC Digital Fan Engagement in Asia; Oman also set for the Oman Open Archery Championship (June 21–27).

US-Iran Escalation Near Hormuz: The US Central Command says it shot down four Iranian one-way attack drones headed toward the Strait of Hormuz and struck Iranian coastal radar sites in Goruk and on Qeshm Island, calling the drones an “immediate threat” to maritime traffic. Frozen Assets Standoff: Iran’s Supreme Leader adviser Mohsen Rezaei tells CNN that a US-Iran peace deal hinges on releasing $24bn in frozen Iranian assets, warning the US would face a “dark corridor” if fighting resumes. Sanctions Pressure on Fuel Smuggling: The US Treasury’s OFAC sanctions a network accused of shipping Iranian-origin LPG disguised as Omani fuel to South and East Asia, using front firms and a shadow fleet. Oman Environment Day: Oman marks World Environment Day with renewed climate action, including tree-planting and awareness drives across governorates. Oman Cricket Recognition: Oman Cricket wins ICC Asia’s Digital Fan Engagement of the Year, earning a spot among global nominees. Local Incident: Firefighters respond to a paper factory blaze in Sohar’s North Al Batinah.

US-Iran Talks Stalled: Iran’s military adviser Mohsen Rezaei told CNN the negotiations are at a deadlock and that the “ball is in Trump’s court,” linking progress to the release of $24bn in frozen assets. Maritime Tensions in the Gulf of Oman: Iran said it fired warning missiles and drones at two US destroyers, but CENTCOM denied any attack, saying such actions would violate the ceasefire. Lebanon Ceasefire Complications: Lebanese leaders accused Iran of using Lebanon as a “bargaining chip,” while Iran reiterated support for Hezbollah and demanded Israel withdraw from southern Lebanon. Oil and Markets: Oil prices slipped as traders weighed demand destruction and the lack of progress in talks; WTI held above $90 amid volatile Iran-related bets. Oman Energy Update: Petroleum Development Oman said Mina al Fahal terminal operations were proceeding normally after a reported explosion/drone scare, with loading disruptions later described as temporary. Oman in Regional Sports: Oman qualified for the 2026 Asian Games men’s cricket event.

Strait of Hormuz & Oil Security: Oman’s Mina al Fahal terminal suspended crude loading after an explosion near its single-buoy mooring berths, reportedly linked to a drone attack; traders later said operations resumed, while the incident added to Middle East shipping worries that are keeping oil prices sensitive. Regional Diplomacy: Iran’s foreign minister said Iran and Oman would jointly manage the Strait of Hormuz under international law, while Iran also signalled it wants “service fees” tied to navigation and security support rather than transit tolls. Markets: Oil prices edged up as Hezbollah rejected a Lebanon ceasefire and the Mina al Fahal disruption hit sentiment; investors also stayed cautious as US-Iran talks remain in limbo. Oman Governance & Compliance: The Financial Services Authority set a 30-day deadline from 2 June for applicants to update accounting and auditing licence procedures, and Oman’s Ministry of Information renewed its call for digital media platforms to secure mandatory licences. Infrastructure & Water: Nama Water Services said the Wadi Al Sahtan water transmission project reached 46% completion, with RO 17.2m invested in the first phase. Transport & Logistics: Oman’s Motcit outlined road and logistics access upgrades, including major road improvement and maintenance spending. Human Stories: Six people were arrested in Nepal for allegedly illegally sending Nepali women to Gulf countries including Oman. Sports: Oman qualified for the 2026 Asian Games men’s cricket event, and Oman’s Mina al Fahal blast also made headlines alongside broader regional sports and business updates.

Oman-UNICEF Cooperation: Oman’s Foreign Ministry met UNICEF to review ways to boost humanitarian and development work with sustainable impact. Hormuz & Shipping Costs: Iran says it will charge ships for services during Strait of Hormuz transit, not for passage itself, as regional tensions keep insurance and logistics pressures high. Regional Connectivity Push: Turkey renewed calls to revive and extend the Hejaz Railway to Oman, aiming to create an alternative trade corridor beyond the Strait of Hormuz. Oman Logistics Upgrade: Oman’s transport authorities outlined major road and logistics improvements, including hundreds of kilometres of strategic road work and large maintenance budgets. Trade & Finance Links: State Street and Jadwa plan to expand services in Oman, while Oman’s capital market ambitions continue to draw foreign interest. Local Community & Safety: Nine Asian nationals were arrested off Dibba for illegal entry, and Oman’s coast guard carried out a medical evacuation in Al Rustaq. Sports: Oman hockey began a second Asian Games training camp in Japan, targeting a stronger continental finish.

Oman Trade & Customs: Oman will make pallet use mandatory for incoming shipments to speed trade flow, starting July 15, 2026 for land ports, then expanding to air and sea from September 15, with exemptions for items that can’t be palletized; non-compliant consignments may be returned. Oman Regulation: The Ministry of Commerce, Industry and Investment Promotion reminded media content creators that licensable media work on digital platforms requires proper licensing under Oman’s Media Law, warning of legal action for violations. Oman Consumer Safety: Oman’s Food Safety and Quality Centre recalled GODIVA Kunafah & Pistachio Milk Chocolate Bars due to an undeclared egg allergen. Oman Environment: Oman’s authority warned against plastic water bottles left in sunlight, saying heat can trigger chemical release, and urged people to cut single-use plastic. Oman Heat Alert: Temperatures in Oman topped 50°C for a second straight day, with Mahout reaching 50.4°C. Regional Security: Iran and the US traded accusations over strikes in the Gulf of Oman and Kuwait, while the UN chief urged restraint amid reports of civilian harm. Trade Talks: India’s CEPA with Oman kicked in on June 1, giving duty-free access for textiles and other sectors, as India also moves toward sealing more FTAs by December.

Gulf Security: Iran launched fresh missile and drone attacks on Kuwait and Bahrain despite a US-Iran ceasefire, with Kuwait International Airport hit and an Indian national killed and dozens injured; Kuwait expelled two Iranian diplomats and Oman, Saudi Arabia and the UAE condemned the strikes, reaffirming Gulf solidarity. Maritime Tensions: Iran’s navy said it targeted a “command-and-control” site aboard a US destroyer in the Sea of Oman, while the US reported disabling an Iran-bound tanker in the Gulf of Oman with a Hellfire missile—keeping Strait of Hormuz risks in focus. Trade & Tariffs: The US moved to list 60 economies, including Oman, in a forced-labour trade probe and proposed new Section 301 tariffs; meanwhile, India-Oman CEPA came into force, giving India duty-free access for textiles and other goods. Oman Watch: CDAA reviewed workflow and executive plans to improve emergency response; customs seized 6kg of marijuana at Muscat airport; Oman also signed MoUs with Belarus on AI and food security and prepared for historic Asian sports debuts.

Oman’s Capital Markets: Oman India Fertiliser Company (OMIFCO) plans an IPO on the Muscat Stock Exchange, offering 25% of shares, with subscription expected to open in June 2026 and listing targeted for July. Banking & Finance: Oman Arab Bank marked the successful listing of its $400m AT1 bond on the London Stock Exchange, drawing strong demand despite global market stress. Energy & Trade Routes: ADNOC resumed naphtha exports via Sohar in Oman, using ship-to-ship transfers to ease supply disruptions linked to the Strait of Hormuz. Geopolitics & Shipping: As Iran-US tensions flare, the US and Iran trade strikes and oil prices jump; regional air and maritime disruptions continue to ripple across the Gulf. Weather Watch: Oman braces for extreme heat, with Barka hitting 49.4°C and several wilayats near 50°C. Digital & Education: UTAS–Al Mussanah will host a Library Forum on “Open Data and the Future Economy,” aligned with Oman Vision 2040, including a launch of its “Afaq” repository.

Heat Advisory: Oman’s Civil Aviation Authority warns of scorching conditions, with temperatures hitting around 48°C in parts including Al Khaburah, Al Suwaiq, Wadi Al Maawil and Saham, urging people to limit outdoor activity and drink plenty of fluids. Public Safety & Services: Royal Oman Police invites residents to join its official WhatsApp channel for traffic updates, safety advisories and service information. Public Sector Training: Royal Academy of Management (RAM) launched a Public Policy Design and Implementation Programme with King’s College London to help public leaders turn national priorities into executable initiatives. Digital Economy Push: The Ministry of Transport, Communications and IT launched “Sas for Excellence” to support Omani tech firms building local digital solutions for wider growth. Agriculture & Trade: Oman is taking part in Belarus’s Belagro 2026 exhibition in Minsk, showcasing Omani food and marine products and exploring investment and partnerships. Energy & Industry: OMIFCO plans to offer a 25% stake in an IPO on the Muscat Stock Exchange, while Oman also launched a $1bn lithium-ion battery anode materials plant in Sohar Free Zone. Regional Tensions: New reports say the US is pressing Oman to break ties with Iran, as shipping and Gulf security concerns continue amid US-Iran exchanges.

Oman-India Trade: Oman’s CEPA with India kicks in from June 1, positioning Muscat as a steadier gateway during Strait of Hormuz disruptions and promising duty-free access for a wide range of Indian exports. Islamic Finance: Dhofar Islamic issued OMR 5 million sukuk via private placement under a new OMR 250 million programme, with listing planned on the Muscat Stock Exchange. Renewables in Sohar: O-Green achieved financial close for a 93MW solar project in Sohar Industrial City, targeting commercial operations in September and supplying clean power to 200+ industrial facilities. Shipping Tensions: Reports say US forces have guided about 70 commercial ships through Hormuz in recent weeks as traffic remains sharply reduced, while Iran-linked claims and strikes keep the corridor volatile. Energy Cooperation: OQ Exploration and Production signed an MoU with Libya’s Investment Authority to explore joint oil and gas opportunities, deepening Oman-Libya energy ties. Consumer Protection: Al Dakhiliyah authorities seized non-compliant tyres worth OMR 13,000 after label mismatches were found.