AGP Executive Report

US-Iran Shipping Shock: Iraq says August oil exports fell 36% as the US-Iran war disrupted Gulf routes, while TankerTrackers reported about 7 million barrels preparing to transit Hormuz under US protection and 17 ship-to-ship transfers in the Gulf of Oman. Oman’s Mediation Line: Oman rejected Iran’s proposal to impose Strait of Hormuz service fees, keeping Muscat’s role as a mediator while avoiding a confrontation over tariffs. Green Hydrogen Push: Oman joined the International Partnership for Hydrogen and Fuel Cells (IPHE) and signed an MoU for green hydrogen use in logistics with Asyad Group, as the country moves from building potential to deploying it. Investment & Trade Outreach: London will host “Live Oman” on Sept. 21 to market urban projects and free-zone opportunities to UK investors. Free Zone Growth: Al Mazunah Free Zone localised four projects worth over OMR620,000 in H1 2026, lifting cumulative investment to above OMR141m. Regional Mobility Cooperation: Oman’s transport leadership discussed GCC green mobility coordination at the Gulf Green Mobility Forum. Finance Watch: MSX market capitalisation rose to OMR38.9bn, up about OMR600m for the week, supported by trading activity and fundamentals. Health Milestone: Oman completed its fourth heart transplant, saving four lives from one brain-dead donor. Defense Update: The US State Department approved possible $188m F-16 sustainment services for Oman.

Green Mobility & Vision 2040: Hyundai Motor Group signed MOUs with Oman’s Ministry of Transport, Communications and Information Technology to support smart-city planning, EV charging and a pilot hydrogen city bus in Muscat, with ultra-fast EV charging infrastructure also planned. Hydrogen Public Transport: The ELEC CITY fuel-cell bus (24 seats) is set to enter passenger service in Q3 2026 via Mwasalat, running through Q3 2027 under the pilot framework. Regional Diplomacy & Law: Oman’s FM Badr Albusaidi warned in the Financial Times that diplomacy is being sidelined and international law is eroding, pushing states toward “gunboat diplomacy.” Strait of Hormuz Pressure: Maritime data showed Hormuz traffic halving on Aug. 31, while oil prices edged toward weekly gains amid renewed US-Iran tensions and shipping security risks. Oman-UAE Rail Deal: His Majesty Sultan Haitham ratified the $2.5bn Oman-UAE railway agreement advancing the Hafeet Rail corridor linking Sohar to the UAE network. Labour Enforcement: Reports say Oman and Bahrain deported thousands of foreign workers in 2026 amid wider regional crackdowns. Weather & Public Safety: Heavy rains hit parts of Al Dhahirah, Al Sharqiyah North and Al Dakhiliyah, with wadis flooding and further scattered rain expected.

Oman’s Diplomatic Role: Britain announced a state visit for Sultan Haitham to Windsor Castle (Oct 20-22), spotlighting Oman’s mediation efforts amid the US-Iran standoff and Hormuz shipping risks. Royal Decrees: HM Sultan Haitham issued 10 Royal Decrees covering diplomatic corps transfers/appointments and updates to laws including narcotics and personal data protections. Regional Security & Hormuz: Oman, Qatar and Pakistan are pushing de-escalation between Iran and the US, with talks focused on maritime security and keeping communication channels open. Shipping Human Impact: The Philippines’ migrant workers agency reported two Filipino seafarers died after a Saudi-flagged tanker was hit near Hormuz; repatriation and family assistance are underway, while Manila keeps the route on red alert. Local Governance (Oman-linked global angle): Oman’s “constructive neutrality” stance is highlighted in commentary arguing smaller states should keep insisting on international norms and dialogue. Transport & Climate Cooperation: Hyundai Motor Group signed MOUs with Oman’s transport ministry and Oman Oil Marketing Co. to introduce hydrogen fuel-cell city buses and expand EV charging infrastructure. Financial Crime Watch: A FATF-OECD report flags digital hawala networks using encrypted apps and stablecoins, including a case traced to Oman involving WhatsApp remittance activity to Pakistan.

Strait of Hormuz Fees: Oman has rejected Iran’s proposal to jointly charge service fees for commercial vessels using the Strait of Hormuz, contradicting an IRGC claim that an Oman-Iran revenue-sharing deal was reached, leaving the status of any charges unclear. Renewables Procurement: Oman’s Power and Water Procurement Company (PWP) has invited bids for legal consultancy for three “Solar 2030” solar IPPs totaling 3,000MW, targeting commercial operations in Q2 2030. Transport & Logistics: Oman’s Ministry of Public Works discussed Kuwaiti-Omani cooperation in transport and logistics, with a focus on Duqm Port’s capabilities. Port Expansion: Duqm Port received a BYD Ro-Ro vessel from China carrying 1,219 vehicles for GCC markets, highlighting Oman’s growing vehicle-shipping capacity. Regional Trade Talks: Qatar’s commerce minister met Omani counterparts to boost bilateral trade, investment, and private-sector cooperation, including coordination with Oman’s transport and energy ministries. GCC Food Security: Oman participated in the 38th GCC Committee for Agricultural Cooperation and Food Security in Bahrain, backing plans for strategic GCC storage zones and updates to agricultural and veterinary frameworks. Anti-Financial Crime Training: India’s CBI ran an economic offence investigation course for officers from 13 ITEC member countries including Oman, aimed at improving investigation and prosecution practices.

Oman–Qatar Economic Talks: Oman’s Investment Authority met Qatar’s commerce minister in Muscat to review joint cooperation and investment opportunities, with logistics and land/maritime transport highlighted. GCC Defence Coordination: Oman took part in the 30th meeting of GCC air force and air defence commanders in Bahrain, focusing on upgrading GCC air defence systems and joint action. Officer Cadets Training: Sultan Qaboos Military College at the Royal Army of Oman Academy staged “Shield 31,” including a live-fire practical demonstration to test cadets’ leadership and field skills. Hormuz Strait Politics & Shipping Risk: US President Trump floated renaming the Strait of Hormuz as the “Trump Strait,” while shipping data shows sharp slowdowns and heightened security disruptions around the corridor. Royal Diplomacy: Buckingham Palace confirmed King Charles and Queen Camilla will host Sultan Haitham bin Tariq for a state visit to the UK in October, amid regional tensions and navigation concerns. Oman–Iran Corridor Talks: Iran and Oman resumed discussions on managing vessel traffic and a joint temporary navigational corridor in the Strait of Hormuz. Port of Duqm Logistics: A major Ro-Ro vessel carrying thousands of vehicles arrived at Port of Duqm, underscoring Oman’s growing capacity for large-scale vehicle shipments.

Strait of Hormuz Crisis: US President Donald Trump floated renaming the Strait of Hormuz as the “Trump Strait,” claiming the waterway is under US control, even as the strait remains shared between Iran and Oman and is vital for global oil and gas flows. Regional Security Escalation: Iran and the US resumed strikes after a lull, with Iran reporting missile/drone attacks on US-linked sites in Bahrain, Kuwait and Jordan, while CENTCOM said US strikes targeted IRGC air defence, radar, maritime, mine-laying and communications capabilities. Shipping and Energy Pressure: The US Navy escorted 40 ships carrying about 18 million barrels through Hormuz, while Iranian tanker crews face prolonged delays due to the US blockade; Iran’s Strait authority also updated a non-compliant vessel list with fines, detention or confiscation. Oman in the Spotlight: Oman’s role in regional maritime arrangements and its guest-of-honor cultural diplomacy surfaced alongside reports of Oman’s participation in major events, including the Baghdad Book Fair and cooperation efforts tied to universities and exhibitions. Oman Travel Advisory: The US updated its Level 3 travel advisory for Oman, citing risks of armed conflict and terrorism, including potential drone and missile attacks. Diplomacy and Media: Kuwait’s KUNA acting DG urged stronger Arab media coordination, with Oman’s ONA among participating agencies.

Water Security in Dhofar: Oman’s Agriculture ministry is rolling out fog harvesting in Dhofar’s mountains to study how Khareef fog can become a non-conventional water source, with 12 collection stations set to monitor conditions. Medical Drone Logistics: Dhofar launched phase two of the “Sky Bridge” drone air-cargo plan, using a 150kg-capacity “Sahm” drone to deliver medical supplies from Salalah to Al Halaniyat. Climate Diplomacy Prep: Oman’s Environment Authority held a first workshop to coordinate national teams for COP31, covering governance, negotiations, and media plans. UN Nuclear-Free Zone Work: Oman chaired a UN working committee meeting on a Middle East WMD-Free Zone, focusing on treaty structure and monitoring mechanisms. Children’s Rights at UN: Oman reaffirmed support for UNICEF and international child-protection efforts at the UNICEF Executive Board session in New York. Regional Security & Shipping Shock: US-Iran strikes and retaliations are again roiling the Strait of Hormuz, pushing oil near $95 and sharply reducing tanker traffic, while Oman and Qatar continue mediation efforts. Culture Abroad: Oman took part in its first official pavilion at the Moscow International Book Fair, showcasing Omani literature, heritage, and tourism. Tech & Economy: Muscat is moving ahead with unified address system implementation, while BankDhofar hosted an SME Growth Forum in Salalah to back entrepreneurs.

Gulf Mediation Push: Qatar’s foreign affairs adviser Dr Majed al-Ansari said Doha is working with Oman and Pakistan to bring Iran and the US back to talks, warning against treating Strait of Hormuz closure as a fait accompli and stressing the wider global fallout. Oman-Saudi Security Talks: Sultan Haitham met Saudi Crown Prince Mohammed bin Salman in Jeddah to coordinate on regional security and stability as US-Iran tensions threaten shipping and energy supplies. Iran-US Ceasefire Link: Iran’s President Masoud Pezeshkian said Tehran will return to the June ceasefire MoU if Washington does, while Iran continues working with Oman on shipping traffic arrangements. Hormuz Escalation and Shipping Risk: US strikes on IRGC-linked targets near and inside Iran followed attacks on tankers near Oman; oil prices jumped as markets priced renewed conflict and Hormuz transit uncertainty. Local Governance Update: Muscat Governorate began field rollout of Oman’s National Addressing Project, with street sign installation and verification already underway in pilot areas.

Strait of Hormuz Security: UKMTO says a tanker about 17 nautical miles east of Khasab was hit by three unidentified projectiles; no injuries or environmental damage reported, as the wider US-Iran flare-up keeps raising maritime risk. US-Iran Escalation: Trump warns of a “hard” response after Iran retaliated with attacks on US forces in Jordan, while Iran’s president says Tehran will return to the June ceasefire framework if Washington does. Oil & Markets: Fresh tanker attacks and renewed strike talk push crude higher again, with Oman crude trading near $99.8 as investors price renewed supply disruption fears. Oman Diplomacy & Regional Role: Amid the Hormuz crisis, Oman and partners remain in the spotlight as mediators, while Iran links any corridor reopening to US commitments. Oman Governance & Services: RAO begins admission procedures for officer cadets; Oman’s Labour Ministry reminds job seekers to activate status monthly to avoid allowance suspension. Halal Tourism Push: A Salalah workshop backs halal tourism standards and certification to turn Oman’s Muslim travel appeal into a more formal, exportable ecosystem. International Links: Oman and Kazakhstan hold political consultations in Astana to review trade and investment cooperation.

Oman & Gulf Maritime Security: UKMTO warned of an incident involving a tanker and “military forces” in the Indian Ocean off Oman, with investigations ongoing—another reminder of how the Hormuz crisis is spilling into wider sea lanes. US-Iran Escalation: After a monthlong lull, the US struck Iranian rocket launchers on Larak Island to prevent sea-mine deployment; Iran retaliated with missiles and drones targeting US bases in Jordan and the UAE, while Trump vowed “hit them hard” and warned of further action. Hormuz Stakes for Oil: The renewed exchange pushed crude back above $90 and revived fears for maritime safety and supply continuity. Oman Economic & Investment Signals: Oman’s reform push and capital-market strengthening were highlighted in a new Oxford Business Group report on Vision 2040’s investment opportunity. Regional Diplomacy Track: Multiple reports point to ongoing mediation efforts involving Pakistan, Qatar, and Oman, but both sides remain publicly far apart on conditions for reopening Hormuz. Oman Business/Regulation: Oman’s central bank raised OMR26.9mn via treasury bills, while NGC renewed calls for LPG pricing framework revision amid cost pressure.

Oman’s Finance & Markets: The Central Bank of Oman raised OMR26.9mn via treasury bills, issuing 91-day, 182-day and 364-day lots with average yields around 3.84%–3.96%, supporting bank liquidity. Strait of Hormuz Security: The US and Iran traded fresh strikes after a month-long lull, with the US hitting IRGC rocket launchers on Larak Island and Iran retaliating against US bases in Jordan; Jordan says it intercepted eight missiles, while the UAE denies any Al Menhad base attack but reports intercepting a drone. Shipping & Energy Pressure: Oil prices jumped above $90 as Hormuz risk returned, with mine threats and tanker incidents near Oman (UKMTO reports a projectile hit near Khasab) keeping transit volumes sharply reduced. Oman’s Domestic Governance: Oman’s Civil Aviation Passenger Rights rules spell out compensation and care for delays/cancellations, while ROP actions included arrests over livestock theft and suspected drug trafficking, plus a consumer protection seizure of 220+ Raqaq bread packs over expiry-date manipulation. Social Policy & Partnerships: An Oman forum on social investment urged a national framework, impact indicators, and stronger financing for social enterprises, with OCCI’s Social Investment Centre driving the recommendations.

US-Iran Escalation in Hormuz: The US struck two Iranian rocket launchers on Larak Island after IRGC forces were seen preparing sea-mine rockets, ending a month-long lull; Iran’s Revolutionary Guards vowed “response and punishment,” while reports also flagged a tanker hit by an unknown projectile near Oman’s Khasab. Oman’s Maritime Exposure: The UKMTO advisory said the Khasab-area tanker incident had no casualties or environmental impact, underscoring how quickly Hormuz risks spill into Oman’s waters. Oman Economy Watch: Oman’s banks extended loans beyond their deposit base, with the loan-to-deposit ratio at 102.9% at end-June, as deposits rose and the IMF expects continued growth. Musandam Infrastructure: Oman reported 76% completion on the new Musandam road (Dibba–Lima–Khasab), aiming to cut Khasab–Dibba travel time to about 55 minutes. Regional Political Signal: Iran’s president admitted “we have many problems,” while also arguing missiles are “of no use,” as US pressure tightens.

Energy & Utilities: Oman’s total electricity generation rose 4.5% by end-July 2026 to 31,732.5 GWh, with Muscat up 197.4% and Al Dakhiliyah up 41.8%, while some governorates saw declines; net electricity production also climbed 4.9% to 30,866.7 GWh, though water production fell 3.2% to 287.48 million m³. Digital Governance: Oman rolled out a national cybersecurity strategy 2026–2030 to protect critical infrastructure, boost cyber resilience, expand capacity and awareness, and strengthen public-private cooperation. Telecom Regulation: TRA issued a Number Portability Regulatory Framework to let users switch providers without changing numbers, standardising procedures and timelines to improve competition. Integrity & Oversight: Madayn held an awareness forum on institutional integrity with a focus on protecting public funds, transparency, conflict-of-interest avoidance, and audit coordination. Consumer Protection: Oman banned trade in 21 categories of used vehicle spare parts and tightened warranty/disclosure rules for permitted used components. Regional Security (Hormuz): Iran says the Strait of Hormuz remains closed and any reopening via Oman is conditional on US commitments, while traffic stays far below pre-war levels. Public Safety: Royal Oman Police reported a deadly Samail multi-vehicle crash killing 6 and injuring 18; police also arrested a livestock theft gang in North Al Batinah. Culture & Tourism: Jabal Akhdar Festival 2026 drew over 300,000 visitors over 45 days, and Oman Theatre Society opened registrations for the inaugural Muscat Theatre Festival.

Strait of Hormuz Diplomacy: Iran says its Oman transit understanding won’t enter implementation until the US fulfills commitments under the Islamabad MoU, with Tehran insisting Hormuz remains closed and any passage needs Iranian coordination, while the US White House and CENTCOM claim they control the strait and have cleared mines. Oman Energy & Industry: Oman is pushing clean-energy and infrastructure work, including Duqm City’s Duqm North and South wind projects (58MW) and a Salalah Engineering Forum on energy transformation. Digital Governance: Oman’s Cybercrime Law (Royal Decree 61/2026) details offences tied to electronic payment means, with penalties for data theft, misuse, and forgery. Road Safety: A Samail crash involving a steel-coils truck killed six women and injured 18, prompting an official investigation. Economy & Markets: Muscat Stock Exchange’s financial sector index hit an 18-year high, and MSX-listed public firms’ net profits rose about 26% to OMR1.2bn in H1 2026. Regional Watch: Qatar’s FDI inflows surged 559% to $3bn in 2025, underscoring GCC competition for investment.

Strait of Hormuz Diplomacy: Iran and Oman say they’ve agreed a temporary corridor for shipping through the Strait of Hormuz, with Iran stressing the route is jointly managed and full reopening tied to US commitments. Oman-Iran Security Standoff: Iran’s Supreme National Security Council and IRGC Navy both reject US claims the strait is fully open, warning transit without coordination won’t be allowed until Tehran’s conditions are met. Energy & Markets: Tanker traffic through Hormuz has ticked up week-on-week, but remains far below pre-war levels, keeping oil prices volatile as markets weigh any progress on access. Dhofar Investment Push: Oman’s “Invest in Oman” platform unveiled five Dhofar opportunities worth about OMR1.95bn, including a major Salalah city project and ecotourism/marine tourism ventures. Salalah Water Agenda: A UN water symposium on sustainability and climate change opens in Salalah, focusing on floods, drought, desalination, reuse, aflaj protection and water-tech tools. Health, Safety, Environment: Oman’s energy regulator is strengthening HSE rules across oil and gas, citing improved safety performance and fewer serious traffic accidents. Regional Cooperation: Oman and Saudi Arabia will review progress on joint economic initiatives at a Salalah meeting, while Oman and Tajikistan held third-round political consultations in Dushanbe. Domestic Security & Economy: Oman seized over 3,000kg of drugs in Dhofar; MSX-listed firms’ half-year profits rose to about OMR1.2bn; Nizwa Industrial City localised 20 projects worth over OMR12mn. Cyber Governance: Oman launched a National Cyber Security Strategy 2026–2030 to boost resilience, governance, capacity building and a cybersecurity economy.

Oman-Iran Diplomacy & Hormuz: Iran’s FM Abbas Araghchi says diplomacy is “not impossible” if the US drops its pressure, after a week of talks involving Oman and Qatar focused on reopening the Strait of Hormuz and managing shipping safely. Regional Sanctions Pressure: Iraq’s FM Fuad Hussein and Oman’s FM Sayyid Badr al-Busaidi discussed how US sanctions targeting Iran’s financial and economic dealings could spill over into regional instability, with both sides calling for continued dialogue. Hormuz Shipping Claims vs Reality: The US says it cleared Iranian mines and that international lanes are open, but international safety warnings and reports of disrupted traffic keep the corridor fragile. Fuel & Market Spillovers: With Hormuz uncertainty still shaping oil risk, Oman-linked regional developments are feeding into expectations for fuel price moves, while global crude trends remain sensitive to any shift in US-Iran talks. Oman Domestic Governance: Oman introduced new water flow measurement standards (electromagnetic, mechanical, ultrasonic) to improve accuracy and water resource management. Sports (Oman): The Jindal League season kicks off with Seeb defending their title, alongside other Omani club fixtures.