AGP Executive Report

Maritime Security Shock: Three Indian seafarers were killed after a US strike hit the Palau-flagged tanker MT Settebello off Oman, with 21 of 24 Indians rescued; India has summoned the US chargé d’affaires and demanded attacks on commercial shipping stop. Oman’s Diplomatic Push: Oman’s FM held talks with the EU’s Kaja Kallas and Norway in Oslo, stressing de-escalation and safe, uninterrupted maritime navigation. Hormuz Tensions, Bigger Than Headlines: Iran condemned the US strikes as “maritime piracy,” while Iran also warned ships against entering the Strait of Hormuz amid claims of closure and continued US naval operations. Local Services Update: Royal Oman Police accredited the first private vehicle technical inspection station, set to open June 16 to cut waiting times and expand access. Regional Outlook: The World Bank raised India’s FY27 growth forecast to 6.6% but warned global growth is hit by West Asia conflict; it also expects GCC economies to rebound in 2026-27 after slower growth.

Oman-US-Iran Maritime Fallout: The UN’s maritime watchdog condemned a US strike on the Palau-flagged tanker Settebello off Oman that killed three Indian seafarers, as India demanded the attacks stop and summoned a US diplomat. New Strike Near Oman: The US also disabled another tanker, Jalveer, carrying 20 Indians, with all evacuated, while CENTCOM said it was enforcing a blockade. Strait of Hormuz Tensions: Amid conflicting claims and fears for shipping, the Strait remained open for commercial transit even as attacks and threats escalated. US-Iran Diplomacy Flip: Trump said planned strikes were cancelled after talks reached Iran’s top leadership, but he also threatened “very hard” action and taking control of Kharg Island. Oman’s Cultural Protection: Oman issued amendments strengthening the legal framework for protecting tangible and intangible heritage, expanding the “competent authority” role for heritage and culture bodies. Oman Diplomacy & Economy: Oman met an IMF team via OCCI to highlight non-oil growth, while Oman and Kazakhstan held talks on documents and archives.

Strait of Hormuz Crisis: Iran says it has ordered the Strait of Hormuz closed to all vessels and warns any ship will be targeted, as the US and Iran trade fresh strikes and the ceasefire hangs by a thread. Oman Shipping Impact: The latest flare-up has kept Oman’s waters in the spotlight, with multiple incidents reported near the coast, including a tanker fire near Shinas. Seafarer Tragedy: India confirms three Indian sailors have died after a US strike on the Palau-flagged MT Settebello off Oman; 21 were rescued, and India has summoned US diplomats over the attacks. New Oman Finance Move: Oman launched the International Financial Centre of Oman (IFC Oman), aiming to attract global investors with a legal and regulatory framework aligned with international standards. EV Insurance Rule: Oman’s FSA mandates minimum EV insurance underwriting coverage by end-2026, with monthly reporting requirements for insurers. Regional Food Security: Musandam is pushing food security investments to boost local production and move toward future export opportunities.

Gulf Security Shock: The US launched airstrikes on Iran after an Apache helicopter was downed near the Strait of Hormuz, with Iran firing back and warning it will not leave attacks unanswered—while the wider ceasefire frays. Oman at the Center of Shipping Risks: India summoned the US chargé d’affaires and lodged a strong protest after a US strike hit the Palau-flagged tanker Settebello off Oman, leaving three Indian crew missing; 21 were rescued and Oman authorities are involved in search and rescue. Hormuz Pressure on Trade: The US also disabled an oil tanker in the Gulf of Oman for allegedly violating its blockade, as reports say tankers are “going dark” to move oil through the strait. Regional Diplomacy: Amid the escalation, Turkey and Saudi Arabia signed logistics and railway cooperation deals, including plans tied to reviving the Hejaz Railway as an alternative route beyond Hormuz. Business & Energy Watch: Oil markets remain jumpy as the conflict threatens supply routes and drives volatility.

Strait of Hormuz Crisis: The U.S. began “self-defence” strikes on Iran after a U.S. Army Apache helicopter crashed off Oman, with CENTCOM calling the response “proportional” to “unjustified Iranian aggression.” A drone boat carried out the first known rescue of the two aviators, who were reported safe, as Iran vowed it would respond and warned foreign forces near its territory face constant risk. Regional Fallout: Iran then escalated tit-for-tat attacks, with reports of strikes on U.S. bases in Jordan and Bahrain and air-defence alerts in Kuwait and Bahrain, while the IMO warned there is no safe passage for ships without credible security guarantees. Oman’s Economy & Investment: The Future Oman Fund signed agreements for 105 projects worth over RO583 million, targeting 2,302 jobs, and Oman’s MoCIIP reviewed Oman’s construction materials sector, highlighting growth potential and export strength. Transport & Trade: The UAE–Oman rail link reached 40% completion, and Oman’s push for global capital continues alongside new regional connectivity deals. Sports: Omani driver Hamed Al Wahaibi retained his Challenger lead in the FIA World Baja Cup after Baja Greece.

Strait of Hormuz Tensions: President Donald Trump blamed Iran for downing a U.S. Army Apache helicopter near the Strait of Hormuz off Oman and said the U.S. “must” respond; Iran’s foreign minister warned foreign forces near its territory face constant risk. First Drone-Boat Rescue: The two pilots were rescued within about two hours by an unmanned U.S. drone boat, marking the first known such sea rescue operation. Oman in the Middle: The incident adds pressure to fragile ceasefire talks and raises fears of wider disruption to a key global shipping and energy route. Omani Port Attack: Separately, a drone attack hit Salalah port, injuring a foreign worker and causing limited damage to a crane. Local Diplomacy: Kuwait and Oman reaffirmed strong bilateral ties at their joint committee session, with more MoUs and an executive program expected. Investment Push: Oman’s International Financial Centre of Oman moves forward with a royal order appointing its board, aiming to boost investor confidence and cross-border finance.

Strait of Hormuz Pressure: The White House escalated pressure on Oman to sever ties with Iran, alleging Oman helped impose transit fees on ships—warning of sanctions and possible force if Muscat refuses. Maritime Security: US forces disabled the unladen Palau-flagged tanker Marivex in the Gulf of Oman for allegedly violating the blockade; 24 Indian crew were evacuated safely with help from Omani authorities. Oman Infrastructure: Track installation has started on the Hafeet Rail project linking Oman to the UAE, moving the 238-km line into the railway infrastructure phase. Duqm Investment Push: Oman signed RO 2.9bn in new Duqm Special Economic Zone deals, including ACME Group’s green hydrogen downstream phases worth $4.2bn, plus power, battery and chemical projects. Environment & Economy: A new report with Oman’s Environment Authority argues stronger environmental governance can improve investment confidence and long-term resilience under Vision 2040. Heat Alert: Oman continues to brace for intense summer heat, with temperatures nearing 50°C in several governorates.

Strait of Hormuz & Shipping Safety: Oman coordinated rescues after a fire on the MT Marivex off the coast near Masirah, with 24 Indian crew evacuated safely as U.S. CENTCOM said it disabled the tanker for allegedly violating the Iran blockade. Weather Watch: Oman’s National Multi-Hazard Early Warning Centre warns of a hotter, drier summer, with temperatures staying above seasonal averages and rainfall below normal across June to August. Auto & Energy Mobility: Changan’s new DEEPAL brand launched in Oman with models S05, S07 and G318, as the company expands its NEV push. Diplomacy & Regional Tensions: Israel and Iran appeared to step back from further strikes after trading fire, while both warned they could retaliate if provoked. Oil Markets: OPEC+ agreed to raise July output by 188,000 bpd, though analysts say the Strait of Hormuz closure limits real supply reaching markets. Oman Governance: Marine Rescue Station operations shifted from the Civil Aviation Authority to the Civil Defence and Ambulance Authority to boost round-the-clock maritime response.

Middle East Energy Shock: Oil jumped over $4 as Israel and Iran traded strikes again, with Brent topping $97 and markets rattled by fears the Strait of Hormuz stays effectively shut. Oman & Hormuz Transit Fees: Iran says the strait will reopen under “new conditions,” including transit fees involving Iran and Oman—an idea the US has opposed. OPEC+ Update: OPEC+ agreed a fourth straight July output quota increase of 188,000 bpd, but analysts warn it may not fix supply gaps while Hormuz disruptions continue. Oman Business & Trade: Oman marks World Accreditation Day, highlighting accreditation’s role in boosting SMEs and quality assurance. Local Economy/Infrastructure: Barka issued EoIs to sell and dismantle two SWRO desalination plants after their water purchase agreements expired and operations ceased. Sports (Oman): Oman’s Al Faisal Al Zubair and David Fuminelli finished sixth and seventh in International GT Open races at Misano; Oman also reached the Asian Games cricket qualifiers semi-final after beating Nepal’s rivals.

Oman Energy & Climate: Oman’s Nama Power and Water Procurement Company has invited bids for project management and supervision for the 300MW Marsa Solar IPP, with a July 26 deadline, as the country pushes its energy transition. The Environment Authority also launched the Oman Environment Atlas for better planning and a future digital environmental system, while Muscat Municipal Council reviewed net-zero progress and the Oman Net Zero Centre’s roadmap. Oman Governance: Majlis Ash’shura will discuss a proposed draft law on alternative penalties and measures at its session on Tuesday. Oman Food Safety: Oman marked World Food Safety Day, highlighting traceability systems and faster action on non-compliant products. Oman-Region Diplomacy: Oman’s Foreign Minister reaffirmed solidarity with Bahrain after an Iranian attack condemned by Bahrain. Oman in the World: Oman joined World Food Safety Day and also received farewell visits from ambassadors of India, Switzerland and Indonesia. Oil Market: OPEC+ agreed to raise July output quotas by 188,000 bpd despite the Strait of Hormuz closure, with Oman among the seven countries. Sports: Oman lost to Nepal by 8 wickets in the Asian Games Men’s Qualifier, ending its chase at 95.

Cybercrime Crackdown: Oman has issued a new Law on Combating Cybercrimes (Royal Decree No. 61/2026) with tough penalties for online gambling and porn, and harsher terms when children or people lacking legal capacity are involved. Digital Medicines: Oman also moves to deter online promotion and sale of unlicensed medicines, with jail terms up to three years and fines up to OMR 100,000, doubling penalties for adulterated or expired products. Online Begging: The same framework targets online begging and soliciting benefits, punishable by three months to three years in prison, with doubled penalties for exploiting vulnerable people. Gulf Trade Pressure: With the Strait of Hormuz still largely shut amid US-Iran tensions, OPEC+ meets to consider higher output quotas, but analysts say the real-world impact may be limited. Energy Sanctions: The US Treasury plans to use Iranian frozen assets to help rebuild Gulf allies, while also sanctioning a network accused of disguising Iranian LPG as Omani gas. Oman Connections: OQEP signs an MoU with Libya’s investment authority to boost oil and gas cooperation. Travel & Aviation: Sri Lanka grants free tourist visas to Omani citizens via ETA, and Philippine Airlines is set to join oneworld, with Oman Air already a member.

Strait of Hormuz & oil markets: Oil prices slipped as traders grew more confident that US-Iran renewed conflict is easing, even as Iran-linked disruptions and shipping risks continue to hang over the region. Regional security: The US said it intercepted Iranian missiles and drones aimed toward the Strait of Hormuz, Bahrain and Kuwait, while Iran and regional states traded accusations over sovereignty and damage. Oman labour & economy: Oman strengthened its ties with the ILO in Geneva, highlighting progress on its social protection system and retaining a Tier 3 labour rights ranking; locally, the Ministry of Labour announced 600 private-sector job vacancies in Muscat. Electric mobility push: Oman is expanding EV charging at hotels and across key tourism areas, alongside broader investments in battery-related industries. Markets in Muscat: The Muscat Stock Exchange kept trading above 1 billion Omani rials for a fourth straight month in May. Climate & sustainability: Oman marked World Environment Day with renewed climate action, while the Environment Authority outlined how climate commitments are being turned into programmes under Oman Vision 2040. Energy & infrastructure: Track installation has begun on the Hafeet Rail project linking Oman and the UAE, and Gasunie backed an Oman-to-Europe hydrogen corridor. Sports & culture: Oman Cricket won ICC Digital Fan Engagement in Asia; Oman also set up an Oman Open Archery Championship for June 21–27.

US-Iran Hormuz Escalation: The US Central Command says it shot down four Iranian one-way attack drones heading toward the Strait of Hormuz and struck Iranian coastal radar sites in Goruk and on Qeshm Island, citing an “immediate threat” to maritime traffic, as Iran and Washington trade claims and the ceasefire talks remain stuck. Frozen Assets Deadlock: Iran’s senior adviser to the Supreme Leader, Mohsen Rezaei, tells CNN that any US-Iran deal hinges on releasing $24bn in frozen Iranian assets, warning the US would “enter into a dark corridor” if fighting resumes. Sanctions on Omani-Disguised Fuel: 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, UAE/China accounts and Iran-linked shadow fleet tactics. Oman Ports & Trade: Oman’s ports—especially Sohar, Salalah and Duqm—are being highlighted as India’s gateway to West Asia, North Africa and East Africa as India-Oman CEPA takes effect. Oman Environment Day: Oman marks World Environment Day with renewed climate action, including tree planting, seedling distribution and awareness drives across governorates. Oman Cricket Recognition: Oman Cricket is named Asia winner for ICC Digital Fan Engagement of the Year, moving into global nominees. Local Incident: Oman’s Civil Defence responded to a factory fire in Sohar, with efforts underway to contain the blaze.

Oman Energy Watch: Petroleum Development Oman says Mina al Fahal’s 800,000 bpd export operations are running normally after reports of an explosion and a suspected drone scare, calming market nerves. US-Iran Maritime Tensions: Iran claimed it fired “warning missiles” and drones at U.S. destroyers in the Gulf of Oman, but CENTCOM denied any attack, saying U.S. ships operate freely and the ceasefire would be violated by such actions. Lebanon Ceasefire Fallout: Iran-backed Hezbollah rejected a U.S.-brokered Lebanon truce, while Lebanese leaders accused Tehran of using Lebanon as a “bargaining chip,” as Israel continued strikes and evacuation warnings. Regional Travel Alert: The U.S. Embassy in Jerusalem raised caution for Americans, keeping Oman and several Gulf states at Level 3 “Reconsider Travel” due to “high tensions.” Global Oil Prices: WTI slipped to around $90.5 a barrel amid volatile Iran-related bets, even as Oman’s terminal update helped limit the damage. Sanctions & Smuggling: The U.S. Treasury announced new sanctions on an Iranian-linked LPG smuggling and shadow banking network, alleging shipments disguised as Omani fuel.

Strait of Hormuz Talks: Iran’s FM Abbas Araghchi says Iran and Oman will jointly manage the Strait under international law, with decisions ultimately coordinated by the two neighbours. Energy Shock in Oman: Oman’s Mina al Fahal suspended oil loading after an explosion near its single-buoy mooring berths, with traders later saying operations resumed; the incident is feeding oil-price volatility amid Lebanon ceasefire uncertainty. Oil Prices: Brent and WTI edged up as Middle East fighting and limited Hormuz traffic kept markets nervous, with analysts warning of potential inventory tightness later this quarter. Oman Finance Moves: The Financial Services Authority set a 30-day deadline (from 2 June) for applicants to update accounting and auditing licensing procedures after regulatory responsibilities shifted to the FSA. Sovereign Funding: Oman plans a new RO100mn local sovereign sukuk issuance (with a greenshoe up to RO20mn), opening for subscriptions this week. Transport & Logistics: Motcit says road and logistics access projects are expanding nationwide, while Asyad Group moves deeper into Central Asia by buying controlling stakes in Uzbekistan logistics platforms. Digital Media Regulation: Oman’s Ministry of Information renewed its call for digital media platforms to secure mandatory licences.

Oman–Kuwait Finance Talks: Oman’s ambassador to Kuwait met Kuwait’s finance minister to discuss boosting financial and economic cooperation and resilience amid shifting regional conditions. Hormuz Pressure and Shipping Costs: Iran’s deputy foreign minister says Iran wants to charge ships for services during Strait of Hormuz passage—navigation, rescue, security and environmental cleanup—while Turkey pushes alternative corridors to reduce chokepoint dependence. Transport & Logistics Push in Oman: Oman’s transport authorities outlined major road and logistics upgrades, including hundreds of kilometres of strategic road work and large routine maintenance spending. Oman–UNICEF Cooperation: Oman’s foreign ministry met UNICEF to review ways to strengthen humanitarian and development initiatives with sustainable impact. Oman Capital Markets Move: State Street and Jadwa plan to expand offerings in Oman as Muscat develops its capital markets and attracts foreign firms. Local Enforcement: Nine people were arrested off Dibba for illegal entry, and a coast guard medical evacuation was carried out in Al Rustaq. Business & Trade: Oman’s logistics sector continues to expand, including major investments and logistics partnerships, while India–Oman CEPA is already opening new export opportunities.