AGP Executive Report

US-Iran Talks Deadlock: Iran’s military adviser Mohsen Rezaei told CNN the negotiations are stuck and “the ball is in Trump’s court,” tying progress to releasing $24bn in frozen Iranian assets ($12bn after an interim deal, $12bn later). Maritime Tensions in Gulf of Oman: Iran’s navy claimed it fired warning missiles and drones at US destroyers and said US ships withdrew; CENTCOM denied any attack or warning shots, stressing US vessels operate normally and the ceasefire wasn’t violated. Lebanon Ceasefire Complications: Iran reaffirmed support for Hezbollah and demanded Israel withdraw from southern Lebanon, while Lebanese leaders said their country shouldn’t be used as a “bargaining chip” in US-Iran talks. Strait of Hormuz, Oman in the mix: Bloomberg reported Tehran says it and Oman have sovereignty over Hormuz, as the standoff drags on near the 100-day mark; meanwhile oil markets reacted to de-escalation hopes. Oman Energy Operations: Reuters/Bloomberg coverage flagged reports of an explosion and possible suspension at Petroleum Development Oman’s Mina al Fahal terminal, but PDO said operations were proceeding normally. US Travel Alert: The US Embassy in Jerusalem urged Americans to reconsider travel, listing Oman among Level 3 countries due to “high tensions.” Sanctions: The US Treasury announced fresh sanctions on an Iranian-linked LPG smuggling and shadow banking network, alleging shipments were disguised as Omani fuel via UAE/China fronts.

Strait of Hormuz Management: Iran’s FM Abbas Araghchi said Iran and Oman should jointly manage the Strait of Hormuz under international law, with Tehran and Muscat making the key administration decisions while exchanging views with other Gulf states. Oil & Security Impact: Oman’s Mina al Fahal terminal suspended oil loading after an explosion near its single-buoy mooring, amid wider Middle East tensions; the move helped lift oil prices as traders weighed limited shipping through Hormuz. Financial Regulation: Oman’s Financial Services Authority set a 30-day deadline (from 2 June 2026) for applicants to update accounting and auditing registration/licensing after regulatory responsibilities shifted to the FSA. Media Licensing Push: Oman’s Ministry of Information renewed its call for digital media operators to secure mandatory licenses, warning that unlicensed activity violates the Media Law. Sovereign Finance: Oman Sovereign Sukuk Company launched its 11th local sovereign sukuk issue worth RO100mn (greenshoe up to RO20mn), with a 5-year tenor and 4.2% annual profit rate. Logistics Expansion: Asyad Group closed a deal to acquire a controlling stake in Uzbekistan logistics platforms, aiming to link Oman’s ports with Central Asia’s rail/road warehousing and customs corridors. Road & Water Projects: Nama Water Services reported 46% completion of the Wadi Al Sahtan water transmission network (RO17.2mn). Transport Overhaul: Oman’s transport ministry outlined major road and logistics access upgrades under its road infrastructure programme.

Oman-UN Cooperation: Oman’s Foreign Ministry met UNICEF to review ways to enhance humanitarian and development cooperation with sustainable impact. Hormuz Costs & Rules: Iran says it will charge ships for services during transit through the Strait of Hormuz—navigation, rescue, security and environmental cleanup—while insisting it does not charge for passage itself. Transport & Logistics Push: Oman is accelerating road and logistics upgrades, including major road improvement, rehabilitation and logistics access projects, alongside large routine maintenance spending. Trade & CEPA Impact: India-Oman CEPA has come into force, granting duty-free access for most textile and apparel lines and expected to boost Indian exports and MSMEs. Regional Connectivity Plan: Turkey is discussing reviving the Hejaz Railway and extending it toward Oman to create an alternative trade route beyond Hormuz. Capital Markets Move: State Street and Jadwa plan to expand offerings in Oman as Muscat builds its financial sector, including the Oman International Financial Centre. Local Enforcement: Oman’s coast guard arrested nine Asian nationals near Dibba for illegal entry. Infrastructure Progress: Wadi Al Sahtan water project reached 46% completion in Al Rustaq. Business Finance: Oman Arab Bank listed a $400m AT1 bond on the London Stock Exchange, oversubscribed on strong demand.

Oman–Belarus Economic Links: Oman’s Chamber of Commerce and Industry delegation met Belarus’s foreign minister in Minsk, discussing ways to expand trade, investment and private-sector partnerships. Oman Trade Facilitation: Oman announced mandatory pallet use for incoming shipments via land ports from July 15, 2026 (with later rollout to air/sea), aiming to streamline customs and improve trade flow. Oman Media Regulation: Oman’s ministry warned digital media operators and influencers that licensable media activity requires proper licensing under the Media Law, with legal action for violations. Oman Space Sector: Etlaq Spaceport signed an agreement with HyImpulse to assess future launch missions and expand operational support for international space players. Gulf Security & Diplomacy: Iran and the US traded accusations over strikes in the Gulf of Oman and Kuwait/Bahrain, while the UN chief urged restraint amid reports of civilian harm. Regional Heat & Daily Life: Oman recorded temperatures above 50°C for a second day, highlighting ongoing extreme summer conditions. India–Oman Trade Boost: India-Oman CEPA came into force June 1, with duty-free access expected to lift textiles and MSME exports. US–Iran Pressure on Oman: Reports say Washington is pressing Oman to “behave” and reconsider neutrality amid Hormuz and wider Iran-war tensions. Business/Logistics: dnata Travel appointed a new divisional VP for corporate travel, while Gallagher increased its investment in ACE Gallagher to strengthen its Middle East insurance footprint.

Gulf Security: Iran’s missile and drone attacks on Kuwait and Bahrain continued despite a US-Iran ceasefire under strain, with Kuwait reporting a strike on Kuwait International Airport that killed an Indian national and injured dozens; Kuwait expelled two Iranian diplomats and summoned Iran’s acting ambassador. Regional Diplomacy: Saudi Arabia and Oman condemned the attacks and reaffirmed solidarity with Kuwait and Bahrain, while Iran’s foreign minister said strikes will continue as “self-defence” against sites used in attacks on Iran. Maritime Flashpoints: The US and Iran traded accusations over Strait of Hormuz and shipping disruptions, as Washington said it disabled an Iran-bound tanker with a Hellfire missile and Iran claimed strikes on US-linked facilities. Oman Governance & Services: Oman’s Civil Defence and Ambulance Authority reviewed workflow and executive plans to improve response speed and service quality across governorates. Energy & Investment: Oman opened technical bids for a 1,000MW/4-hour battery storage advisory role, and discussed energy security as global markets shift toward resilience. Trade & Economy: India-Oman CEPA entered into force, boosting duty-free access for Indian textiles and other sectors, while Oman and Korea explored deeper economic cooperation via SEZAD. Public Safety & Law: Oman customs seized over 6kg of marijuana at Muscat airport, underscoring intensified border controls.

Oman–Iran Pressure & Neutrality: The Wall Street Journal reports the US is unhappy with Oman’s neutrality in the US-Iran conflict, urging Muscat to “choose a side” and cut ties with Tehran, while Oman’s Information Minister says Muscat is ready to work with responsible partners and insists there are “no plans for tolling” in the Strait of Hormuz. Maritime Security & Hormuz Risk: As the Gulf crisis escalates, US forces say they disabled an Iran-bound tanker (Hellfire strike on the engine room) and continue blockade enforcement, while regional airspace disruptions and attacks around Kuwait and Bahrain underline how fast shipping and aviation can be disrupted. Oman–India Trade: India-Oman CEPA took effect June 1, with experts calling it a stabilizing economic link as Hormuz disruptions strain supply chains and energy flows. Oman Finance & Markets: Oman Arab Bank marked the successful listing of a $400m AT1 bond on the London Stock Exchange, highlighting investor demand despite geopolitical stress. Tourism Investment: Oman’s MHT signed usufruct deals for a four-star resort in Al Hamra and a five-star hotel in Mirbat, with combined investment above RO12m. Digital Governance: Oman’s MoTCIT cybercrime law and related digital security steps continue to draw attention as regional governments push e-services.

Oman–US-Iran Pressure: The Wall Street Journal reports the US is pushing Muscat to choose sides and break ties with Iran, even as Oman says it will keep channels open to prevent escalation. Strait of Hormuz Security: US and Iranian forces traded strikes again, while Rubio said Iran has agreed to negotiate previously off-limits nuclear points—fueling hopes for reopening the strait. Maritime Flashpoint: IRGC claimed a cruise-missile strike on MSC’s Sariska V near Iraq; UKMTO reported a large explosion but Iraqi investigators questioned whether it was a deliberate attack. Oman Digital Governance: MoTCIT launched a cybercrime law push and the “Sas for Excellence” initiative to back Omani tech firms and strengthen digital sovereignty. Public Sector Training: RAM launched a Public Policy Design and Implementation Programme with King’s College London. Economic & Trade Moves: Oman launched a $1bn lithium-ion battery anode materials plant in Sohar; Oman also joined Belagro 2026 in Belarus and discussed industrial cooperation with Belarus. Regional Business: Oman-India CEPA took effect June 1, and Oman Arab Bank listed $400m bonds on the London Stock Exchange.

India–Oman CEPA: Oman’s Comprehensive Economic Partnership Agreement with India kicks in June 1, with duty-free access for most Indian exports and new rules of origin; officials say it should boost jobs and trade, including labour-intensive sectors like gems, textiles, engineering and processed foods. Strait of Hormuz pressure on Muscat: Amid US–Iran escalation, reporting says the US has been covertly coordinating commercial ship passages through Hormuz, while Iran warns of wider restrictions; the diplomatic squeeze keeps Oman in the middle of competing demands. Shipping flare-ups near Oman: IRGC-linked claims and maritime reports describe strikes involving vessels near the Gulf of Oman/Iraqi waters, underscoring how quickly commercial routes are being disrupted. OQ–Libya energy ties: OQ Exploration and Production signs an MoU with Libya’s Investment Authority to explore joint oil and gas opportunities, deepening Muscat’s investment outreach beyond the region. Labour unrest at Royal Fleet Auxiliary: Royal Fleet Auxiliary officers at the UK’s support-ship arm plan a 24-hour strike over pay, leave and allowances. Consumer enforcement: Oman’s consumer protection authorities seize non-compliant tyres worth OMR13,000 in Al Dakhiliyah over mismatched manufacturing labels.

Strait of Hormuz Crisis: Iran says it has halted all message exchanges with the US and warns any ceasefire breach in one front means breach everywhere, while oil prices jump as traders price in longer disruption and possible wider closure risks. US-Iran Escalation: The US says it carried out “self-defense” strikes on Iranian radar and drone command sites after a US MQ-1 drone was shot down; Iran counters with claims of strikes on US-linked assets, including in Kuwait. Regional Diplomacy: Gulf states—including Oman—condemn alleged Iranian attacks on Kuwait, underscoring rising pressure for de-escalation even as talks wobble. Maritime Fallout: Despite a ceasefire, thousands of seafarers remain stranded as the UN shipping agency warns crew transfers are too risky; shipping lanes and tracking practices are shifting amid blockade enforcement. Oman Policy & Governance: Oman promulgated a new cybercrimes law to toughen penalties and protect digital data, while the Shura Council received a military college delegation briefed on its oversight role. Trade & Investment: India-Oman CEPA takes effect with duty-free access for most exports, and Oman’s Investment Authority expands its global portfolio across growth sectors. Economy & Industry: Oman is moving toward demand-led industrial projects with guaranteed offtake, aiming to reduce investor uncertainty.

India-Oman CEPA in force: The India-Oman Comprehensive Economic Partnership Agreement takes effect today, giving Indian exporters duty-free access to 98.08% of Oman’s tariff lines (covering 99.38% of India’s export value) and expected to lift India’s goods exports by nearly 50% over three years, with immediate zero-duty access for items like honey, cashew, dairy, frozen fish, and confectionery, plus services and mobility provisions for professionals. Oman investment push: Oman Investment Authority expanded its Future Generations Fund portfolio in 2025 across private equity, venture capital, healthcare, logistics, infrastructure and advanced technology, reaching about RO 8.57bn with RO 1.041bn profits. MSX market reform: Muscat Stock Exchange extended trading hours to boost liquidity, price discovery and market depth. Strait of Hormuz pressure: Iran says new regulations govern Hormuz traffic and rejects foreign interference, while US-Iran talks remain unsettled as Washington seeks further changes to a proposed ceasefire-and-reopening framework; France’s Macron urged a swift US-Iran deal and immediate reopening “without conditions,” as maritime risk and mine warnings continue. Tourism projects: Oman’s MoHT signed usufruct deals for a 4-star resort in Al Hamra and a 5-star hotel in Mirbat, with investment above RO 12m (about $31m).

US-Iran Negotiations & Hormuz Pressure: Iran’s Araghchi said talks and message exchanges with the US are ongoing but urged against speculation, while Iran’s parliament negotiator Ghalibaf reiterated Tehran will only accept a deal that secures Iranian rights with tangible results; the wider standoff keeps Oman at the center of maritime risk management. Maritime Security in Oman: Oman’s Maritime Security Centre issued a navigation warning after a floating object suspected to be a naval mine was sighted near the Strait of Hormuz, urging extreme caution and immediate reporting. Customs & Public Safety: Muscat airport customs seized 6.179kg of marijuana in 17 packages; Oman also announced the annual midday work ban for outdoor labourers from June 1 to protect workers during near-50°C heat. Trade & Economy: India-Oman CEPA starts June 1 with duty-free access for major Indian exports; India also issued rules of origin for CEPA to enable preferential tariffs. Tourism Projects: MoHT signed usufruct deals for a 4-star resort in Al Hamra and a 5-star hotel in Mirbat, with investment above RO 12 million. Workforce Pipeline: SEZAD and SQU will launch a two-week Duqm summer internship programme from June 7 for 18 students.

Strait of Hormuz Security: Oman’s Maritime Security Center warned of a suspected floating mine in Omani territorial waters, urging heightened caution as shipping remains disrupted amid regional tensions. US-Iran Naval Standoff: The US disabled the Gambia-flagged bulk carrier Lian Star in the Gulf of Oman after it ignored “more than 20” warnings, keeping it adrift and underscoring the blockade’s enforcement as ceasefire talks continue. Iran’s Counter-Position: Iran warned any military interference in Hormuz management would be targeted, while also pushing legislation to formalize its authority over passage—claims that clash with US demands to reopen Hormuz under strict conditions. Oman’s Domestic Moves: Oman introduced an electronic transport document to regulate truck freight and cut irregular practices; it also completed Tiwi breakwater rehabilitation (RO 2.9m) and advanced Qurayat fishing port upgrades (fixed pier plus new investment area). Investment & Economy: Oman announced a $1bn lithium-ion battery anode materials project in Sohar and unveiled investment opportunities backed by guaranteed purchase agreements; Muscat Stock Exchange extended trading hours and saw a weekly rebound.

US-Iran Ceasefire Talks Stalled: President Trump’s Situation Room meeting ended after ~2 hours with no final decision on a potential 60-day ceasefire extension and Strait of Hormuz reopening; the White House says any deal must meet “red lines,” including preventing Iran from obtaining nuclear weapons, while Iran’s Foreign Ministry insists no agreement is finalized and message exchanges continue. Hormuz Management Clash: Iran’s spokesman Esmaeil Baghaei says future Strait management concerns only Iran and Oman, rejecting Trump’s “must” language and claims of a lifted blockade; Iran also says it will focus on ending the war before nuclear details. Oman in the Middle: Iran’s FM Abbas Araghchi held talks with Oman’s Badr Albusaidi on regional security and future Hormuz administration, with both sides stressing international law and sovereign responsibilities. Maritime Security Warning: US and UK maritime authorities warned ships to expect ongoing military operations north of Oman’s Musandam and urged extreme caution, continuous VHF watch, and coordination with naval guidance. Iran Sanctions Pushback: Iran’s new Strait of Hormuz authority (PGSA) condemned US sanctions and vowed to keep granting passage permits “without interruptions.” Balochistan Fallout: Shahnaz Baloch’s family publicly disassociated from the BLA commander, saying they had no contact for 12 years and stressing loyalty to Pakistan and the law.

US-Iran Ceasefire Decision: President Trump says he’s making a “final determination” on a proposed 60-day Iran ceasefire extension and reopening the Strait of Hormuz, while Iran insists no final agreement exists and rejects “language of must.” Hormuz Tolls Clash: Trump’s red lines include “no tolls” and unrestricted shipping, but Iran and Oman talks point to a possible “future administration” of the strait that could involve fees, keeping the dispute alive. Oman-Iran Diplomacy: Iran’s FM Abbas Araghchi held a “very productive” call with Oman’s FM Badr bin Hamad Al Busaidi on legal management of Hormuz and regional security, with both sides reaffirming commitment to safe maritime navigation under international law. Negotiations Under Strain: Iran links any final deal to Washington ending “excessive demands” and contradictory positions, as US-Iran exchanges of strikes continue to test the fragile ceasefire. Local Oman Angle: Oman’s Foreign Ministry has set 15 minimum criteria for ambassador selection, barring PR holders and NGO staff funded by foreign assistance from applying. Oman Sports: Oman’s national team heads to a Jakarta training camp, while the U20s begin intensive preparations for AFC Asian Cup qualifiers.

Hormuz Pressure on Muscat: US Treasury chief Scott Bessent says Oman has assured Washington there are “no plans” to toll the Strait of Hormuz, after US warnings that any facilitation would trigger sanctions. US-Iran Ceasefire Talks: A tentative 60-day MoU to extend the truce and reopen Hormuz shipping is reported, but it still hinges on President Trump’s final approval as both sides trade accusations of ceasefire violations. Regional Fallout: Iran condemns US threats against Oman as “blackmail,” while the UAE’s foreign minister Sheikh Abdullah denounces Iran’s “terrorist attacks” on Kuwait amid renewed missile/drone alerts. Shipping Reality Check: Despite a slight uptick, daily Strait of Hormuz transits remain far below pre-war levels, and nearly 2,000 vessels are reportedly waiting to exit the Gulf. Oman Domestic Watch: Oman’s heat hit 47.5°C in Al Rustaq, and a local expert warns food security depends as much on logistics and cold storage as on production. Economy/Industry: Mazoon Copper Project earthworks are completed, moving the project toward an accelerated 2027 launch.

US-Iran Ceasefire Talks: The US and Iran have reached an outline 60-day ceasefire extension and a framework for nuclear talks, but it still awaits President Donald Trump’s final approval, with reports saying the deal would include unrestricted Strait of Hormuz passage and mine removal within 30 days. Strait of Hormuz Pressure on Oman: As negotiations wobble amid renewed strikes, US Treasury Secretary Scott Bessent warned Oman against any role in facilitating an Iran-linked tolling system, saying Washington will “aggressively target” actors involved and impose sanctions. Diplomatic Pushback: Iran’s UN envoy rejected US and Israeli claims as lacking legal basis, while Russia urged both sides to keep talking and avoid a return to war. Oman Local Life (Eid): Oman’s Al Seeb launched a three-day Eid Al-Adha festival with heritage performances, children’s competitions, and family activities, alongside a consumer exhibition for local small businesses. Oman Economy: Work on the Mazoon Copper Project in Al Dhahirah has advanced, with major earthworks completed to speed up the integrated copper-gold development.