AGP Executive Report

Strait of Hormuz Talks: Iran says it is in the final stage of drafting an Oman deal to reopen shipping, but insists the US must back down on its blockade; the proposal also sparks disputes over whether Iran would control inbound traffic and whether any tolls or fees could apply. Shipping & Energy Impact: Global shipping groups urge the UN and IMO to oppose any Strait of Hormuz transit fees, while oil markets react to shifting expectations; Kuwait also discusses a new crude export pipeline to reduce reliance on the chokepoint. Market Mood: Oil’s rebound on Hormuz uncertainty lifts yields and pressures equities, with gold slipping after earlier gains as investors weigh deal hopes against higher energy costs. Oman Business Angle: Asyad Shipping marked the naming of its new product tanker “MT Manah,” underscoring fleet expansion amid heightened maritime risk. Global Trade Watch: Dangote Refinery displaced the US as Europe’s top JetA1 supplier for a second month, highlighting changing refined fuel flows. Regional Security: Iran warns of retaliation against Gulf energy infrastructure if the US attacks again, while maritime incidents near Oman keep shipping risk elevated.

Strait of Hormuz Talks: Iran says its Oman framework for managing Strait of Hormuz shipping is in the “final stage,” but Tehran stresses reopening still hinges on the U.S. ending its naval blockade and sanctions. Shipping Risk & Costs: Maritime groups are urging the UN to stop any proposed tolls/fees, warning they’d set a costly precedent for global free navigation and raise energy and inflation pressures. Market Watch: Oil and gold are reacting to deal headlines—gold hit a seven-week high as rate-hike fears eased, while traders remain cautious over whether flows will truly return. Oman in the Spotlight: Oman’s Royal Oman Police has been selected to represent Asia at the World Bank’s Africa Transport Policy Program in Cairo (March 2027), highlighting road safety leadership. Regional Trade Logistics: Hapag-Lloyd is expanding East Africa services, building on its Port of Mombasa presence, as Kenya upgrades Mombasa and Lamu infrastructure. Energy/Shipping Incidents: UKMTO reported twin explosions near a tanker in the Strait of Hormuz off Oman, with no damage and crew safe—underscoring how fragile security remains.

Strait of Hormuz Talks: Iran and Oman say they’ve agreed the geographical coordinates for a new shipping route and are finalising a joint declaration, with Tehran warning that “third parties” could still obstruct progress; Market Impact: the prospect of reopening helped lift risk appetite, with the Dow closing at a record while gold surged on the same optimism; Shipping Costs Debate: eight major shipping associations warned the UN against any tolls or compulsory fees in Hormuz, saying it would set a risky precedent for freedom of navigation; Energy Prices & Inflation: oil held around the high-$70s as traders weighed deal headlines, while gold jumped toward $4,200 and silver also rallied; US-Iran Pressure Play: Trump said a deal could come within days and warned gasoline prices could rise again if the conflict drags on, while Iran insists talks are with Oman and links any reopening to US commitments; Oman Angle: Oman is repeatedly positioned as the mediator and route manager in the proposed inbound/outbound model, keeping Muscat at the centre of regional trade and logistics.

Strait of Hormuz Talks: US President Donald Trump says a deal to reopen the Strait of Hormuz could come as early as Wednesday or within 48 hours, as reports say Iran and Oman are nearing a 60-day interim arrangement that would route inbound traffic via an Iranian-controlled lane and outbound via an Oman-controlled lane, with service fees and mine-clearing discussed—though Iran also warns the strait won’t reopen if US “violations” continue. Energy & Markets: Oil slid on the optimism, with Brent easing back toward/under $80, while equities rallied to records on hopes of de-escalation; gold also firmed as rate-hike expectations cooled. Oman Business & Trade: Oman Air launched five new cargo routes in one week (including Singapore, Tashkent, Sochi, Abu Dhabi and Salalah) to boost Asian connectivity and perishable shipments. SME Growth (Al Buraimi): SMEs registered in Al Buraimi reached 2,708 by end-2025, led by micro-enterprises, with activity concentrated in trade, repairs, construction, manufacturing and services. Agri-Aquaculture (Shinas): A shrimp farming project in Shinas is 80% complete, with OMR5mn invested in the first phase expected to support local jobs and larvae production. Oman–Ethiopia Ties: Oman’s ambassador says relations are accelerating, with trade expanding in areas like coffee, sesame and livestock imports and construction materials exports. Tourism Heritage (Al Hamra): “Al Misfah House of Honey” is drawing visitors by showcasing traditional mountain beekeeping and Omani honey.

Strait of Hormuz Talks: Senior US officials say a deal to reopen the Strait of Hormuz could be reached “today or tomorrow,” with Marco Rubio citing progress in Iran-Oman discussions and Scott Bessent pointing to a possible rapid breakthrough—though Iran insists talks with the US are not direct. Maritime Risk in Oman Waters: Even as diplomacy heats up, UKMTO reports a cargo ship near Oman was hit by an unknown projectile, underlining how fragile shipping security remains. Oil Market Impact: Oil slid after Qatar and US comments boosted hopes for a diplomatic resolution, with Brent falling below $80 and crude down around 5% as markets priced in improved flows. Oman-Iran Deal Shape: The emerging framework discussed by officials includes ships entering via an Iranian-controlled route and exiting via an Oman-controlled route, with service fees—while any arrangement appears tied to US port-blockade relief. Regional Mediation: Qatar says mediators are coordinating closely with Oman and Pakistan to bridge US-Iran gaps and keep de-escalation on track. Education for Expats: UAE-based XCARE Academy launched a free online Intermediate programme for Pakistani students across the Gulf, including Oman, offering Grade 11–12 options under Pakistan’s FBISE.

Strait of Hormuz Shipping Shock: A Liberian-flagged bulk carrier, Minyuan Pioneer/Minoan Pioneer, was hit by an unidentified projectile near Oman’s coast, triggering a fire; the crew abandoned ship and one seafarer (third engineer) remains missing, with UKMTO/UK maritime monitors urging caution. Oman Energy Data: Oman’s electricity generation rose 5.7% in Jan–Jun 2026 to 26,075.3 GWh, with Muscat and Al Dakhiliyah leading growth. Central Bank Liquidity Move: The Central Bank of Oman raised OMR20mn via treasury bills (91- and 182-day tenors). Oman Air Cargo Expansion: Oman Air Cargo added five routes in one week—Muscat to Singapore, Tashkent, Sochi, Abu Dhabi, plus Salalah–Dubai—aimed at boosting perishables and time-sensitive freight. Labour Governance in Salalah: Oman’s Labour Ministry ran labour forum labs on governance of legislative procedures and sector development in Salalah. Markets Watch: Oil edged up after a sharp sell-off as US-Iran talk signals stayed mixed, while global equities tracked earnings momentum.

Oman Tourism Boost: Oman launched a free 14-day tourist visa for citizens of 100+ countries, with entry rules including valid passport, hotel booking, return ticket, health insurance and funds—aimed at lifting visitor numbers and supporting economic diversification. Oman–India Trade: India invited applications for 2026-27 import quotas under the Oman-India free trade framework, covering items such as dates and marble, plus aluminium and petrochemical products. Agriculture & Fisheries Growth: Oman’s agriculture and fishing sector grew in Q1 2026, with GDP at constant prices up 6.1% to about RO 337.8m, driven by stronger farm output and improved supply efficiency. Hormuz Talks, Mixed Signals: US President Donald Trump insisted US-Iran talks are ongoing and warned Iran of a “last chance before decapitation,” while Iran denied direct talks and said discussions are with Oman on a temporary Hormuz route—keeping shipping risk and oil volatility in focus. Oil & Markets: Oil prices slid to a three-week low after the strike pause and diplomacy hopes, while equities rallied on reduced escalation fears. Regional Business Link: The Bahrain–Oman Products Exhibition opened in Salalah, highlighting SME trade ties and entrepreneurship cooperation.

Oman Agriculture & Fisheries: Oman’s agriculture, forestry and fishing sector grew 6.1% in Q1 2026 to about OMR337.8m, driven by stronger farm output (+12%) and steady fisheries (+0.9%), with the sector’s GDP share rising to 3.4%. Climate Policy: Oman submitted its third Nationally Determined Contribution (NDC) report to the UNFCCC, targeting 33% total emissions reduction by 2035 (7% unconditional, 26% conditional) and aligning with net-zero by 2050. Tourism Push: Dhofar launched the “Dhofar is Something Else” campaign to boost Khareef 2026 tourism, aiming to lift visitor numbers and hotel occupancy. Hormuz & Shipping Risk: Iran says talks with Oman are nearing completion on a temporary safe route through the Strait of Hormuz, while denying any US talks; the shifting diplomacy has sent oil prices down sharply and kept maritime security in focus after explosions near tankers off Oman. Digital Retail: Zoho rolled out Zoho POS across GCC markets including Oman, targeting VAT-compliant, omnichannel retail operations. Aviation Deal: Jazeera Airways launched a GCC promo with up to 50% off fares to destinations including Oman.

Strait of Hormuz Talks: US President Donald Trump said Iran talks will start Monday and that the US will hold off on fresh strikes if an agreement rapidly delivers the “immediate, complete and total” reopening of Hormuz, while Iran denies any deal and says negotiations with Oman are in their final stages. Oil & Markets: Oil prices swung lower after the strike pause, but shipping risk remains high after reports of LNG and tanker incidents near Oman and Khasab, keeping energy volatility front and centre. Oman-Iran Shipping Mechanism: Iran and Oman are reportedly discussing new transit arrangements, with debate over routes and whether any fees or control terms apply—an issue that could reshape regional trade risk. Oman Liquidity: Oman’s total local liquidity (M2) rose 12.7% to RO 28.6bn by end-May 2026, with loans/financing up 11.5%, supporting the domestic business backdrop. Green Water & Biofuel: Nama Water Services is piloting camelina cultivation with Hema Energy to support biofuel and net-zero goals using recycled water. Business & Trade Links: OCCI highlighted growing commercial registrations in Al Wusta (nearly 7,000) and pushed digital-economy cooperation, including a recent Oman–Mauritania digital transformation push. Regional Finance: Bahrain’s NBB launched a multi-currency debit card feature, while Bahrain Bourse slipped 4.2% in July. Aviation/Utilities: Marafiq will invest in a new industrial desalination plant for Meranti Green Steel’s Al Duqm green iron project.

Green Energy & Water: Nama Water Services is running a pilot with Hema Energy to cultivate Camelina plants using recycled water, aiming to support biofuel production, food security, lower carbon emissions and build a system to measure carbon sequestration and feasibility. Oman’s Finance Snapshot: Oman’s domestic liquidity (M2) rose 12.7% to OMR28.6bn by end-May 2026, with M1 up 26.9% and private sector deposits up 10.5%, while loans and financing grew 11.5%. Aviation Recognition: Oman Airports won “Best Airport Management Company for Operational Excellence – Middle East 2025” at the GBM Awards, citing improved processes and passenger experience. Market Mood: Muscat Stock Exchange’s main index climbed about 160 points last week to 7,277, with trading value up 40% to over OMR255m. Tourism & SMEs: Al Jabal Al Akhdar Festival drew 100,000+ visitors by end-July and featured 45 days of events plus direct marketing for SMEs, home-based producers and farmers. Regional Risk Watch: US says it will pause planned strikes on Iran if a rapid deal is reached, with the Strait of Hormuz reopening central—keeping shipping and business uncertainty high.

Middle East Security: The U.S. State Department and multiple U.S. embassies urged Americans across the region—including Oman—to consider leaving or be ready for sudden flight cancellations and airspace closures as Trump threatens fresh strikes on Iran and tensions around the Strait of Hormuz keep rising. Shipping Risk for Oman: UKMTO reported a tanker off Oman was hit by an unknown projectile, with another explosion near a separate vessel—another reminder of how fast maritime disruption can spread in the Gulf. Oman Environment Watch: Satellite images reviewed by the AP show crude leaking from a sanctioned tanker grounded off Oman, with an oil sheen affecting Dhofar’s Qibliyah Island and raising spill-break risk during monsoon seas. Entrepreneurship in Oman: ARI extended registration for its UpGrade Programme to Aug 15, backing university and recent graduates to turn projects into start-ups, with tracks including Emerging Technologies, Water and FinTech. Local Business & Society: Oman marked Purple Saturday with a week-long push for inclusion and accessibility for people with disabilities.

Strait of Hormuz Security: UKMTO says an “unknown projectile” struck a tanker off Oman near Lima, damaging the engine room and leaving the vessel not under command; a second incident near Khasab reported a splash and explosion close to another tanker, with no damage or injuries—both under heightened US-Iran tensions. Oman Energy Data: Oman’s natural gas production rose 6.7% to 29.54 billion cubic metres by end-June 2026, with higher associated and non-associated output, while gas use climbed in industrial projects and power generation. Industrial Investment: Ibri Industrial City attracted about OMR25mn in investments by end-June 2026, with 17 signed contracts covering over 250,000 sqm across oil & gas, food and light manufacturing, supported by Oman Vision 2040 initiatives. PDO Contract Pipeline: L&T Energy Hydrocarbon Onshore signed a six-year EPC framework with Petroleum Development Oman, positioning the firm as one of four eligible contractors for PDO FEED and EPC work. Markets & Capital Market Rules: Muscat Clearing and Depository Company (MCDC) launched a mechanism for regulating consolidated accounts to help investors manage holdings across multiple beneficial owners, aligning with global deposit practices. Regional Business Risk: Shipping disruptions and security alerts around Hormuz continue to weigh on trade flows, while the wider Middle East conflict keeps energy and logistics uncertainty elevated.

Strait of Hormuz Energy Shock: Oil prices jumped after Iran claimed it stopped tankers and that Hormuz traffic was disrupted, while CENTCOM said the strait remains open—keeping markets on edge as shipping flows thin to single digits at times. Red Sea Security Push: Saudi Arabia unveiled a 14-nation maritime defence coalition to protect Red Sea energy routes amid ongoing Houthi-linked threats, with Bab el-Mandeb traffic still a key pressure point for regional trade. Oman’s Hormuz Diplomacy: Oman-backed proposals for voluntary fees and shared management of Hormuz continue to circulate as Iran and Gulf states trade competing positions on who controls passage. Oman Business & Tourism: Oman Air added a new daily Muscat–Abu Dhabi route and expanded Khareef operations with SalamAir, while Swiss-Belhotel opened Swiss-Belhotel Nizwa to boost GCC hospitality capacity. Oman Energy Projects: L&T Energy Hydrocarbon signed a six-year EPC agreement with Petroleum Development Oman, underlining continued investment momentum despite regional volatility. Global Trade Ripple: Asian LNG prices may soften further if US-Iran talks progress, but tight Gulf supply could limit the drop. Human Interest (Oman-linked): Rescuers in Pakistan recovered bodies after a Broad Peak avalanche that left Omani climber Nadhira Al Harthy among those missing.

Solar Investment Pipeline: Nama Power and Water Procurement (Nama PWP) invited bids for financial and commercial consultancy to develop and procure three 1 GW Solar 2030 utility-scale IPPs in Oman, targeting 3 GW total capacity connected to the national grid. Tourism Compliance: Oman’s Ministry of Heritage and Tourism issued a circular requiring licensed hospitality and tourism establishments to collect an 8% service charge and distribute it in cash to employees monthly, with strict record-keeping and reporting to the ministry. Hormuz Trade Risk Watch: Rystad Energy said Asian LNG prices could keep easing if US-Iran peace talks progress, while Oman continues pushing a Gulf-backed plan to restore normal Strait of Hormuz shipping—though governance remains contested. Regional Shipping Security: Saudi Arabia unveiled plans for a multinational maritime defence coalition to protect Red Sea and Gulf of Aden routes, with 43 countries and the EU attending; Oman was not listed among supporting states. People & Safety: Rescuers in Pakistan’s Broad Peak avalanche recovered four bodies and continued searching for six others, including Omani climber Nathira and Netflix documentary star Nirmal “Nims” Purja.

Oman–Mauritania Digital Push: Oman and Mauritania held talks in Nouakchott to expand cooperation in digital transformation, cybersecurity and government tech, including exchanges on AI, drones and secure data infrastructure. Hormuz Talks, Market Jitters: Oil prices swung as Oman and Iran exchanged proposals to manage the Strait of Hormuz, with Iran rejecting an Omani joint-management plan; shipping disruption kept risk premiums elevated. Red Sea Security Coalition: Saudi Arabia unveiled a multinational maritime defence alliance to protect Bab al-Mandeb and Red Sea routes after Houthi attacks, with 43 countries and the EU involved; Oman was not listed among backers. US–Iran Escalation: The US launched new strikes across Iran after missile attacks, while CENTCOM denied claims that aircraft were destroyed in Jordan. Oman Space Milestone: Advanced Rocket Technologies and Aqtar Space Technologies completed Oman’s first solid rocket motor static fire test at Etlaq Spaceport, marking progress toward a domestic launch ecosystem. Oman Business & Industry: Raysut Cement centralised quarry management under Tharawat Energy & Mining; industrial firms on MSX reported strong H1 profit growth despite geopolitical uncertainty. People & Trade: Bangladesh and Oman discussed joint research and innovation, including AI and drones, while direct air services between Muscat and Zanzibar were set to boost tourism and business links.

GCC Oversight: Oman joined the 27th GCC meeting of Deputy Heads of Audit and Accounting Institutions, discussing GCC auditing research and an AI-powered platform for audit outcomes. Hormuz Diplomacy: Oman is pushing a Middle East-backed plan for voluntary fees on Strait of Hormuz transits, but Iran is resisting joint management and wants greater control, keeping shipping uncertainty high. Maritime Security & Energy Risk: Drone strikes hit Egypt’s Damietta port, igniting fires on gas vessels, while Qatar reportedly resumed LNG shipments through Hormuz after a pause. Oman Food & Consumer Rules: FSQC urged prior approval for advertising infant and young-child foods on social media. Renewables Tenders: Oman’s Nama Power & Water Procurement Company invited bids for consultancy on three 1GW solar projects. Oil Market Pressure: Shell reported a 70% profit jump and announced a $3bn buyback, citing Middle East disruption effects; ADNOC Drilling posted record Q2 and H1 results and reaffirmed 2026 guidance. Regional Finance: Kamco Invest flagged a GCC bond/sukuk maturity peak of $143.1bn in 2029, with Oman among the smaller exposure group. Heritage Discovery: Archaeologists uncovered a stepped Neolithic pyramid in Dhofar, pointing to long-distance trade links as far back as 4,000 BCE.