AGP Executive Report

Strait of Hormuz Escalation: Iran says it struck an unmanned US vessel, calling it a response to US attacks on Iranian tankers—claims the US Central Command dismissed as “total lie.” Iran’s parliament speaker Mohammad Bagher Ghalibaf warned the “era of proportionate responses” is over, promising faster, harsher retaliation. New Maritime Restrictions: Iran’s top security official Mohsen Rezaei said a new “restricted/prohibited zone” will be declared outside Hormuz, with any ship entering placed on a sanctions list, and Iran and Oman are set to sign an agreement on a new corridor. Shipping Risk Hits Record Lows: Shipping data shows Hormuz traffic at the lowest since May after US-Iran strikes, with only a handful of ships transiting daily. OPEC+ Oil Policy: OPEC+ decided to pause oil output increases in October, keeping September-required levels for October as the war disrupts markets. Oman-France Diplomacy: Sultan Haitham spoke by phone with French President Macron, stressing stronger diplomatic efforts to bolster regional security. Oman-Yemen Power Link: Oman and Yemen signed an electricity interconnection deal to supply power to Mahra via Oman’s Dhofar grid. Local Culture: Dhofar International Film Festival (second edition) opened in Salalah with films from 16 countries.

Strait of Hormuz Tensions: Iran says it attacked a US naval drone and targeted oil tankers and US-linked vessels as the US retaliated for missile strikes on its warships, with CENTCOM reporting three Iranian tankers disabled or sunk; the back-and-forth keeps the chokepoint effectively under pressure. Oman in the Middle: Oman is part of OPEC+’s core group, which has kept October output policy unchanged despite disruption risks from the Iran war. Energy Links: Oman and Yemen signed agreements in Salalah to connect electricity grids, aiming to boost power stability in Al Mahra via interconnection with Dhofar. Tourism Boost: Oman saw Indian visitor numbers rise 11% in 2025 (6.94 lakh), with 3.81 lakh arrivals in Jan–Jun 2026, helped by expanding direct flights. People & Culture: Oman wrapped its first participation at the Moscow International Book Fair, while Oman Airports won nine ACI customer experience awards for Muscat and Salalah. Environment: 6,146 baby turtles were released to sea in Oman after a volunteer-led conservation push.

US-Iran Maritime Escalation: The US says it struck and destroyed three Iranian oil tankers after Iran’s IRGC fired ballistic missiles at a US aircraft carrier and destroyer; CENTCOM named the vessels as M/T Downy and M/T Stark 1 (permanently disabled) and M/T Kylo (destroyed) in the Gulf of Oman and near Kharg Island and Jask, while warning it could target Iran’s “oil fleet” if attacks continue. IRGC Retaliation Claims: Iran’s IRGC Navy says it then hit three tankers on “unauthorised” Strait of Hormuz routes and three US-linked vessels, and Tehran’s foreign ministry condemned the US action as a “war crime.” Shipping Disruption Signals: UKMTO reported merchant vessels faced “disabling fire” in the Arabian Gulf and Gulf of Oman amid the fighting, with no confirmed casualties. Oman Angle—Diplomacy Pressure: Egypt’s foreign minister urged renewed US-Iran talks in a call with Oman’s FM, highlighting regional efforts to de-escalate as Hormuz tensions keep flaring.

Hormuz Security: The Strait of Hormuz is still effectively closed for commercial shipping, with only a handful of vessels crossing compared with pre-crisis levels, as US-Iran tensions keep traffic suppressed. US-Iran Escalation: CENTCOM says it struck three Iranian crude tankers after Iran launched ballistic missiles at US Navy warships; the US claims the vessels were part of an IRGC “shadow network.” Gulf Oil Flows: Despite the risk, TankerTrackers reports 24 million barrels moved in the Gulf of Oman via ship-to-ship transfers, while about 7 million barrels were preparing to transit under US protection. Oman Diplomacy: Egypt and Oman discussed de-escalation and renewed US-Iran talks, stressing the need to safeguard navigation through Hormuz. Oman-Rwanda Ties: President Paul Kagame will visit Oman on Sept. 7-8 to expand cooperation across political, economic and investment areas. Green Hydrogen Push: Oman joined IPHE and signed an MoU for green hydrogen use in logistics, while hydrogen-powered transport plans gain momentum. Markets & Tourism: MSX market value rose to OMR38.9bn; classified hotel guests and revenues fell in July, while Muscat airport traffic showed a drop year-on-year.

Oman’s Green Mobility Push: Hyundai Motor Group signed new cooperation deals with Oman’s Ministry of Transport, Communications and Information Technology at the Gulf Green Mobility Forum, including a pilot hydrogen-powered city bus for Muscat via Mwasalat and plans for ultra-fast EV charging near the capital. Regional Weather Watch: Oman saw heavy rain and strong winds in Al Dhahirah, Al Sharqiyah North and Al Dakhiliyah, with thunderstorms over parts of the Hajar Mountains; more unsettled conditions are expected. Strait of Hormuz Tensions: Oman is again in the spotlight as Iran’s proposed ship-fee plan is reported to have been rejected by Muscat, amid wider US-Iran escalation that’s also keeping oil prices supported. Transport Deal Update: His Majesty Sultan Haitham ratified the $2.5bn Hafeet Rail agreement linking Sohar to the UAE rail network, aimed at faster passenger and freight movement. Sports—Oman in the Mix: Oman is set to face Bahrain in the AVC Volleyball Men’s Continental Championship, with the tournament also featuring Oman in the same pool. Business & Tech: Oman’s Phaze Ventures continues to expand its AI investment footprint, with portfolio companies drawing new funding and partnerships.

Strait of Hormuz diplomacy: Oman, Qatar and Pakistan are pushing US-Iran de-escalation talks, aiming to keep maritime security and communication channels open as tensions continue around the key chokepoint. Shipping safety in focus: Two Filipino seafarers were killed after a Saudi-flagged crude tanker was hit by unidentified projectiles near Hormuz; the Philippines’ migrant workers department says the rest of the crew is safe and repatriation support is underway. Oman cultural project update: Structural steelwork for the Sayyid Tarik bin Taimur Cultural Complex in Muscat has reached substantial completion, including a national library, archives, theatre and cultural plaza. Local weather: Oman’s National Centre of Meteorology forecasts hot conditions with winds up to 45km/h, dust risk, and a chance of rain over eastern areas on Saturday. Royal visit: Buckingham Palace announced King Charles and Queen Camilla will host Oman’s Sultan Haitham for a state visit at Windsor Castle from October 20–22.

Oman-Iran Hormuz row: Oman has rejected Iran’s proposal to jointly collect service fees from ships using the Strait of Hormuz, contradicting an IRGC claim that an agreement was reached, leaving the status of any revenue-sharing plan unclear. Regional shipping pressure: As U.S.-Iran tensions continue, shipping risks remain high, with reports of tanker attacks near Oman and renewed concerns about disruptions to global oil flows. Oman energy push: Oman’s PWP has invited bids for legal consultancy for three “Solar 2030” solar IPPs totaling 3,000MW, targeting commercial operations in 2030. Trade and logistics: Oman’s transport ministry activities featured in the Gulf Green Mobility Forum in Salalah, focusing on express delivery regulation and digital transformation. Local governance and economy: Oman’s commerce leadership highlighted growing Qatar-Oman ties and sustainable partnerships, while CBI ran an economic offences investigation course for ITEC member countries including Oman. Weather: UAE forecasts point to scattered rain and hail in parts of Dubai and Al Ain, with calmer seas expected.

Oman-Qatar Investment Talks: Oman and Qatar reviewed joint cooperation and investment opportunities, focusing on logistics, land and maritime transport, and ways to deepen partnerships between public bodies and private firms. GCC Air Defence Coordination: Oman took part in the 30th meeting of GCC commanders of air forces and air defence in Bahrain, discussing joint action to upgrade GCC air defence systems. Hormuz Security Shock: A Saudi-operated crude tanker incident in the Strait of Hormuz killed two Filipino seafarers; Manila says families will receive assistance, compensation and repatriation support. Hormuz Disruption Watch: Shipping data shows a sharp drop in Strait of Hormuz transits amid renewed Iran-US tensions, raising fresh concerns for energy flows. Oman-UK Royal Spotlight: Buckingham Palace confirmed Sultan Haitham’s state visit to the UK at Windsor Castle from Oct 20–22, amid heightened Middle East tensions. Port of Duqm Boost: Duqm welcomed a BYD Ro-Ro vessel carrying thousands of vehicles, underlining the port’s growing capacity for large-scale shipments. Youth Empowerment at UN: Oman reaffirmed its commitment to youth participation and the UN Youth Strategy 2030 during a UN General Assembly debate. Telecom/Address Progress in Muscat: Muscat continues rolling out unified address systems and telecom number portability implementation.

Strait of Hormuz: US President Donald Trump again floated renaming the Strait of Hormuz as the “Trump Strait,” claiming Washington has control—while Iran and Oman’s sovereignty and the strait’s role as a key global oil route remain central to the dispute. Maritime safety in focus: Saudi Arabia condemned an Iranian attack on Bahri’s supertanker Sidr, saying two Filipino sailors were killed after projectiles hit the vessel while transiting near Oman’s Musandam. Escalation risks: Fresh US-Iran strikes and retaliations across the region have kept shipping and energy markets on edge, with analysts warning that disruptions could quickly feed into fuel prices. Oman economy update: Oman’s oil production rose 11.3% to 233.80 million barrels by end-July 2026, while exports increased to 181.93 million barrels. Local and regional ties: Oman and Saudi Arabia held economic and commercial coordination talks in Salalah as regional security and trade remain tightly linked. Oman travel advisory: The US maintained a Level 3 “Reconsider Travel” warning for Oman, citing terrorism and armed-conflict risks.

LNG Supply Diversification: Bangladesh plans to expand its LNG supplier base, with Oman’s OQ Trading Limited (OQT) among long- and short-term sources, as 29 companies are shortlisted for spot purchases. Oman Energy Prices: Oman’s official crude price for November delivery rose to $101.56 amid renewed US-Iran fighting that is keeping Hormuz-linked supply fears in focus. Hormuz Security Shockwaves: A Saudi Bahri tanker, Sidr, reported a “security incident” in the Strait of Hormuz, killing two Filipino crew members; Iran also claims mine damage to two vessels, while US-Iran exchanges continue to rattle shipping. Oman Markets: Muscat’s MSX 30 Index jumped 4.5% in August, with gains across services, financials and industrials. Tourism & Heritage: Khareef Dhofar drew 881,424 visitors by mid-August, and Muscat restored the 200-year-old Al Seeb Fort as a heritage landmark. Water Innovation in Dhofar: A fog harvesting project is underway to test non-conventional water sources during the monsoon season. Drone Medical Logistics: Dhofar launched the second phase of the “Sky Bridge” drone programme, using a 150kg cargo drone to deliver medical supplies to Al Halaniyat. Regional Science Cooperation: Oman chaired a semi-annual FASRC meeting, highlighting research awards and Arab innovation networks.

Strait of Hormuz Tensions: The US launched fresh strikes on IRGC targets in Iran after attacks on tankers near Oman, as Iran vowed retaliation and said it’s ready to return to a June ceasefire if Washington does. Shipping Risk: Two crude tankers carrying Saudi oil were hit by “unknown projectiles” near Khasab, with traffic already sharply reduced—raising fresh fears for global oil flows. Oman-Saudi Diplomacy: Sultan Haitham met Saudi Crown Prince Mohammed bin Salman in Jeddah to discuss bilateral ties and regional security as the crisis deepens. Oman Connectivity: SalamAir launched its first direct Muscat–Sylhet flight, becoming the first foreign airline to serve the Bangladeshi city. Local Economy Watch: Oman’s Muscat Stock Exchange index rose slightly, while oil prices jumped on renewed Hormuz fears. Sports: Oman’s football and basketball results featured in regional qualifiers, with Oman also drawing attention in Asian Games logistics.

Strait of Hormuz Security: Two Saudi oil supertankers were hit by unknown projectiles while exiting the Strait of Hormuz near Oman, with UKMTO reporting a tanker struck by three rounds and no crew injuries or environmental impact—raising fresh shipping and oil-supply fears as US-Iran tensions flare. Oman Energy Numbers: Oman’s oil output rose 11.3% to 233.8 million barrels by end-July 2026, while natural gas production grew 6.4% to 34.98 billion cubic metres, according to NCSI. Regional Diplomacy: Iran’s president said Tehran would return to a June MoU ceasefire terms if the US does, as mediators including Oman and Qatar push for a diplomatic path to reopen Hormuz. Oman Business & Infrastructure: Sohar International and NBO signed a $720m refinancing facility for Phoenix Power, supporting Oman’s power infrastructure after a PPA extension. Local Economy & Culture: Salalah launched a “Halal Tourism” workshop to build standards and capacity, while Oman’s Būt wild tree was highlighted for its long-standing role in mountain communities.

Strait of Hormuz Shockwaves: Fresh US-Iran hostilities reignited fears of longer disruption to one of the world’s key oil routes, pushing Brent near $90 and WTI above $86 as Trump vowed “hit them hard” after strikes on Iran’s Larak Island and Iran’s retaliation against US-linked targets in Jordan and the UAE. Maritime Alerts for Oman: UKMTO warned of an incident involving a tanker and “military forces” in the Indian Ocean east of Oman, while another report said a vessel was hit by three projectiles near Khasab with no casualties reported. Oman in the Diplomacy Mix: Multiple reports point to Oman’s role in mediation efforts to reopen Hormuz, even as Iran ties any reopening to US commitments. Regional Cooperation: Kazakhstan and Oman held foreign ministry consultations, focusing on energy, mining, logistics, food production and AI. Tourism & Data: GCC tourism statistics workshop convened in Muscat, aiming to improve data integration across hotels, airports and digital platforms. Business Travel: Radisson targets faster regional growth via property conversions and franchising, with Oman among the GCC stops mentioned.

Middle East Tensions: The US and Iran traded strikes again after a month-long lull, with Washington hitting rocket launchers on Larak Island and Tehran retaliating by targeting US-linked bases in Jordan and the UAE, while Jordan said it intercepted eight missiles. Aviation Disruption Watch: The EU aviation safety agency extended warnings for airlines to avoid Persian Gulf waters around Bahrain, Kuwait, Qatar and the UAE until Sept 30, and also cautioned against flying over Gulf of Oman waters in Oman’s Muscat flight information region. Oman Finance: Oman’s central bank raised OMR26.9mn via treasury bills, including 91-day, 182-day and 364-day lots. Social Investment Push: Oman’s Social Investment and Sustainable Development 2026 forum urged an integrated national framework, clearer impact indicators and new financing tools for social projects. Shipping & Environment: Iran said it seized a bulk carrier over alleged pollution in the Strait of Hormuz, while markets watched the Strait’s risk premium as oil prices climbed back above $90.

Strait of Hormuz Flashpoint: The US carried out its first strikes on Iran in a month, hitting two Iranian rocket launchers on Larak Island after IRGC forces were seen preparing sea-mine launches; Iran’s Revolutionary Guards vowed retaliation and said the attack caused deaths and injuries, while the US said it was acting to protect the “free flow of commerce” after mine-clearing operations. Maritime Risk Near Oman: UKMTO reported an oil tanker was struck by an unidentified projectile about 12 nautical miles north of Khasab with no casualties or environmental damage reported, underscoring how quickly incidents are resurfacing around Oman’s doorstep. Oman Banking Watch: Oman’s banks extended more loans than deposits, with the loan-to-deposit ratio at 102.9% at end-June, while private deposits rose 12.45% to RO 19.37bn. Gulf Inflation Snapshot: GCC inflation stayed subdued despite oil and gas price swings, but Oman’s inflation rose 3.2% year-on-year in July, driven mainly by food and transport. Local Development: Oman’s Diba–Lima–Khasab road project reached 76% completion, cutting travel time to about 55 minutes for commuters.

Strait of Hormuz diplomacy: Iran says its understanding with Oman on a temporary transit route will not be implemented unless the US fulfills its commitments, insisting the strait remains closed and any vessel must get Iranian coordination and authorisation. Energy update: Oman’s total electricity generation rose 4.5% by end-July to 31,732.5 GWh, with Muscat Governorate up 197.4%, while net electricity production climbed 4.9% to 30,866.7 GWh. Telecom shake-up: Oman’s TRA issued new telecom rules for number portability and for internal building telecom networks, aiming to make switching providers faster and set standards for developers and property owners. Water & climate focus: A Salalah symposium on water resources sustainability opened, tackling water management and climate-change adaptation. Renewables push: Duqm wind projects advanced to construction-ready stage, targeting about 190 GWh annually. Consumer protection: Oman banned trade in 21 categories of used vehicle spare parts and tightened warranty requirements; Dhofar also seized 2,763kg of expired fish over date manipulation. Road safety: A Samail multi-vehicle crash killed six and injured 18, with an investigation launched. Culture & tourism: Jabal Akhdar Festival 2026 drew over 300,000 visitors, and Muscat Theatre Festival registration opened for its inaugural edition.