AGP Executive Report

Heat Advisory: Oman’s Civil Aviation Authority warned of extreme summer temperatures, with readings near 48°C in parts including Al Khaburah, Al Suwaiq, Wadi Al Maawil and Saham, urging residents to limit outdoor activity and hydrate. Public Safety & Comms: Royal Oman Police invited the public to join its official WhatsApp channel for traffic updates, safety advisories and service information. Digital & Education: The Ministry of Education and Oman Broadband Company signed a “Young Merchant” entrepreneurship programme for students (grades 7–11), while the Royal Academy of Management launched a Public Policy Design and Implementation Programme with King’s College London. Industry & Investment: Oman launched a $1bn lithium-ion battery anode materials plant in Sohar Free Zone, targeting up to 200,000 tonnes annually. Diplomacy: Oman and Belarus discussed deeper industrial and investment cooperation during an OCCI delegation visit tied to Belagro 2026. Regional Tensions: US-Iran talks remain fragile amid renewed strikes, with the Strait of Hormuz still a major shipping risk. Markets: Muscat Stock Exchange’s 30 index fell 0.30% on Tuesday. Weather: NCM forecast dust-stirring winds up to 45 knots on Wednesday and Thursday, with rough seas at times in the Arabian Gulf.

Oman-India CEPA: India’s trade pact with Oman comes into force June 1, with Oman’s location outside the Strait of Hormuz keeping Muscat a “reliable trade and energy gateway” during Gulf disruptions, according to GTRI. Shipping risk in Hormuz: The NYT reports US forces guided about 70 commercial ships through the Strait over three weeks, with many vessels switching off transponders to avoid detection—while analysts say the “dark” passages can’t be independently verified. Oman in the wider Iran-US fallout: BBC Verify says Iran has damaged at least 20 US military sites across eight countries, including Oman, and the IRGC claims it struck the MSC Sariska after an earlier attack near Oman. Local enforcement: Oman’s Consumer Protection in Al Dakhiliyah seized 500 non-compliant tyres worth OMR13,000 over mismatched manufacturing dates and confiscated items. Energy and investment: OQ signed a Libya energy MoU, while O-Green reached financial close for a 93MW solar project at Sohar Industrial City, targeting September operations.

Strait of Hormuz Tensions: Iran says it has halted all indirect talks with the US and warns any ceasefire breach will be treated as a full, across-the-board violation, as the US and Iran trade strikes and oil prices jump again. Regional Diplomacy: Oman joined Gulf states in condemning alleged Iranian attacks on Kuwait, while Muscat continues to push for safe navigation and freedom of shipping through the strait. Maritime Disruption: Even with a ceasefire in place, thousands of seafarers remain stranded in the Gulf, with the UN shipping agency warning conditions are still too dangerous for crew changes. Trade Boost for Oman: India-Oman CEPA comes into force, with duty-free access and new rules that could lift Indian exports and investment links, including a reported $1.8m shipment launch. Oman Economy & Investment: The Oman Investment Authority expanded its global portfolio across growth sectors, while Oman’s central bank raised funds via treasury bills. Local Development: WHO reviewed progress toward Barka Healthy City accreditation, and Al Batinah North outlined major 2026–2030 growth plans.

India-Oman CEPA in force: The India-Oman Comprehensive Economic Partnership Agreement kicks in today, giving Indian exporters duty-free access across 98.08% of Oman’s tariff lines (99.38% of export value), with immediate zero-duty for key goods like honey, cashew, dairy, frozen fish, and confectionery, and a push to lift India’s exports by about 50% over three years. Oman investment push: Oman Investment Authority says it expanded its global portfolio in 2025 across private equity, venture capital, healthcare, logistics, infrastructure and advanced tech, with the Future Generations Fund reaching about RO 8.57bn. Markets update: Muscat Stock Exchange extends trading hours to boost liquidity and price discovery. Heatwave alert: Temperatures surged, with Barka hitting 49.1°C, and other wilayats in the upper 40s. Tourism projects: Oman’s Ministry of Heritage and Tourism signed deals for a RO 12m+ hospitality push in Al Hamra and Mirbat. Hormuz tensions: Iran says new Strait of Hormuz maritime rules allow no foreign interference, while US-Iran talks remain fragile amid renewed strikes and calls from France to reopen the strait.

India–Oman CEPA: The Comprehensive Economic Partnership Agreement kicks in from June 1, bringing duty-free access for Indian exports and expanding services and professional mobility, with customs rules on origin and tariff concessions now in place. Strait of Hormuz risk: Oman’s Maritime Security Centre issued a navigation warning after a floating object suspected to be a mine was spotted near the Strait of Hormuz, urging vessels to keep distance and report sightings. Maritime flashpoints: The US said it disabled a Gambia-flagged ship trying to breach the Iran blockade in the Gulf of Oman, while Iran and the US continue trading accusations as talks remain unsettled. Heat and labour rules: Oman’s midday work ban starts June 1 to protect workers from extreme temperatures, as several regions report highs near 49°C. Tourism investment: The Ministry of Heritage and Tourism signed deals for a 4-star resort in Al Hamra and a 5-star hotel in Mirbat, with investment above RO 12 million. Water security: A GCC report says groundwater extraction is down 3% over nine years as renewable water sources rise in the region’s water mix.

Strait of Hormuz Alert: Oman’s Maritime Security Centre says it detected a suspected naval mine west of the inshore traffic zone in Omani territorial waters, urging all vessels and fishermen to stay clear and report anything suspicious. US Blockade Push: CENTCOM says it disabled the Gambia-flagged bulk carrier Lian Star in the Gulf of Oman after repeated warnings, as the US continues enforcing its blockade of Iranian ports amid ceasefire talks. Shipping Risk Escalates: The UK Maritime Trade Operations warns threats around Hormuz have reached a “critical level,” with commercial traffic reduced and mine/navigation risks highlighted. Oman Investment Momentum: Oman announced a $1bn lithium-ion battery anode materials project in Sohar Freezone, while the Muscat Stock Exchange extended trading hours and reported a weekly rebound, alongside new bond and sukuk listings. Local Development: Tiwi breakwaters rehabilitation is complete, and Qurayat fishing port is getting major upgrades including a new fixed marine pier and an investment area. Health & Society: Oman’s drug awareness expert Dr Amira al Raidan was selected for the US Humphrey Fellowship, and the Oman Across Ages Museum held an Eid Al Adha “Joy of Generations” event.

Oman’s Hajj Services Win: The Omani Hajj Mission has won the Silver “Labaytum” Award for Excellence in services for Omani pilgrims, praised for operational efficiency, field services, transport management, and health and regulatory compliance. Hormuz Deal Still Not Signed: Iran says no agreement has been finalised with the US yet, with message exchanges continuing as Washington weighs a potential 60-day ceasefire extension and Strait of Hormuz reopening. Trump’s Conditions, Iran’s Pushback: Trump’s stated demands include no nuclear weapons, immediate Hormuz reopening, no tolls, and mine removal; Iran counters that it won’t accept “must” language and says future Strait management concerns only Iran and Oman. Oman in the Middle of Security Talks: Iran’s FM Abbas Araghchi met Oman’s Badr Albusaidi to discuss regional security and future Hormuz management under international law. Maritime Warning for Shipping: US and UK authorities warned vessels to use extreme caution in the northern Strait of Hormuz due to ongoing military operations near Musandam, urging vigilance and coordination with guidance channels. Trade Deal for Oman-India: A CEPA-linked update says a Preferential Certificate of Origin for exports to Oman will be issued from June 1, with duty-free access for most of India’s exports.

Strait of Hormuz Diplomacy: US President Donald Trump says he’s making a “final determination” on a proposed deal with Iran that would extend the ceasefire for 60 days and reopen Hormuz for “unrestricted” shipping, with mines removed and Iran’s enriched uranium handled with US/IAEA coordination—while Iran insists there is still “no final agreement” and rejects Trump’s “language of must,” saying it will judge by actions. Oman’s Role: Iran’s foreign minister Abbas Araghchi held a “very productive” call with Oman’s FM Badr Al Busaidi on Hormuz “future administration” and regional security, with both sides stressing maritime navigation under international law. Local Governance & Policy: Oman’s Foreign Ministry set 15 minimum criteria for ambassador selection, barring PR holders and excluding people with certain foreign residency, NGO funding links, or corruption-related convictions. Sports: Oman’s national team left for a Jakarta training camp ahead of the Gulf Cup and Asian Cup build-up, while the U20s map an intensive plan for AFC U20 qualifiers.

Strait of Hormuz Tensions: Iran and the US traded strikes as a fragile ceasefire faces strain, while a reported 60-day truce extension still hinges on US President Donald Trump’s approval. Oman Under Pressure: Iran called US threats “blackmail” after Washington warned Muscat over any role in tolling the Strait; Oman’s ambassador told US Treasury chief Scott Bessent there are “no plans” to impose tolls. Shipping Bottleneck: US Treasury said nearly 2,000 vessels are waiting to leave the Gulf, underscoring how Hormuz disruptions are feeding energy and freight worries. Oman Heatwave: Temperatures hit 47.5°C in Al Rustaq, with multiple wilayats above 46°C. Food Security Focus: A Dhofar workshop said logistics—transport, cold storage and distribution—drives fruit and vegetable prices more than production alone. Oman Economy/Industry: Mazoon Copper Project earthworks are completed, paving the way for faster implementation toward a 2027 launch. Sports: Oman drawn in AFC U20 Asian Cup 2027 Qualifiers Group E with Qatar, Saudi Arabia and Hong Kong.

Strait of Hormuz Pressure on Oman: US Treasury Secretary Scott Bessent warned Oman against any role in a Strait of Hormuz tolling system, saying Washington will “aggressively target” anyone facilitating tolls and impose penalties, after the US sanctioned Iran’s new Persian Gulf Strait Authority. US-Iran Ceasefire Talks: The US and Iran reportedly agreed a 60-day ceasefire extension framework, but it still needs President Donald Trump’s final approval, with negotiations also set to cover Iran’s highly enriched uranium. Escalation Risk: Fresh US-Iran exchanges followed attacks near Bandar Abbas and a missile strike toward a US base in Kuwait, with both sides accusing the other of violating the truce. Eid Celebrations in Oman: Al Seeb kicked off a three-day Eid Al-Adha festival with heritage shows, family activities and competitions, while Omani pilgrims in Mina marked Eid with traditional customs and gatherings. U20 Football Draw: Oman’s U20 team were placed in Group E of the AFC U20 Asian Cup China 2027 qualifiers with Saudi Arabia, Qatar and Hong Kong. Weather Update: Oman’s NCM expects temperatures to drop over the weekend, with generally clear skies and light to moderate winds.

Strait of Hormuz Tensions: US-Iran talks stayed fragile as the US carried out fresh strikes near Bandar Abbas, shooting down four Iranian drones and hitting a ground control station, while Iran’s IRGC said it retaliated by targeting a US airbase; Kuwait also reported intercepting hostile missile and drone threats. Oman Under Threat: In a White House cabinet meeting, Donald Trump warned Oman not to cooperate with any Iran-linked plan to share control of the Strait of Hormuz, saying “Oman will behave… or we’ll have to blow them up,” even as the White House dismissed an Iranian state-TV report of a draft MoU as “complete fabrication.” Markets and Shipping: Oil rebounded sharply on renewed attacks and supply fears, and shipping data showed some tankers and an LNG vessel exiting the strait with transponders switched off, underscoring uncertainty for regional trade. Regional Impact: The ILO warned the Middle East crisis is increasingly spilling into global labour markets through energy costs, disrupted transport, tourism hits and tighter migration flows.

Oman-Eid Update: Sultan Haitham bin Tarik led Eid Al Adha prayers at Sultan Qaboos Mosque in Sohar, with the Royal Family, senior officials and citizens attending. Hormuz Pressure on Muscat: US President Donald Trump warned Oman to “behave” or face attack, saying the Strait of Hormuz must stay open and that “nobody’s going to control it,” after reports Iran and Oman were discussing shipping procedures and possible tolling. US-Iran Deal Row: The White House rejected an Iranian state TV report of a draft MoU, calling it “complete fabrication,” while Trump said the US is “not satisfied” and Iran is “negotiating on fumes.” Maritime Safety Alert: A Greek-owned tanker reported an external explosion off Oman, with the crew safe and a small fuel leak contained.

Strait of Hormuz Tensions: Iran says the US violated a fragile ceasefire with strikes on Hormozgan, while the US calls them defensive and Iran warns it will retaliate—at the same time, Iran has started restoring internet after a major shutdown, and negotiators keep meeting amid “deep suspicion” on both sides. Shipping Shock Off Oman: A VLCC linked to Greek operator Olympic Shipping & Management reported an external explosion and bunker fuel leak about 60 nautical miles east of Muscat, adding fresh nerves to already fragile tanker traffic. Oman’s Mediation Role: Oman is pushing to keep the Strait’s established navigation system as a free, IMO-recognised arrangement, while Iran and Oman discuss a new toll/fee approach—an issue that could reshape costs and routes. Local Human Interest: In Karachi, a woman was offloaded for allegedly trying to travel to Oman using fake marriage papers. Regional Trade & Tech: UAE trade officials say they’re rerouting commerce via Oman-linked corridors and eastern ports as the conflict disrupts global supply chains.

Strait of Hormuz Tensions: Brent surged about 4% after fresh U.S. strikes in southern Iran dashed hopes of a quick deal to reopen the waterway, as Iran called the attacks a “ceasefire violation” and warned of consequences. Diplomacy Under Strain: Both sides played down any imminent breakthrough, with Iran’s negotiators in Doha and U.S. Secretary of State Marco Rubio saying talks could “take a few days.” Maritime Fallout: A tanker off Oman reported an “external explosion” with a bunker fuel leak, while CENTCOM said it redirected 108 commercial vessels as blockade enforcement continues. Oman Regional Links: Oman’s Foreign Minister held talks with Qatar on resuming maritime navigation through Hormuz, and Oman-UAE logistics moved forward as Sharjah waived transit tariffs for Oman-bound trucks via the Khatmat Malaha corridor. Local Watch: Oman’s Haj Mission said it has mobilised resources for Omani pilgrims during Day of Arafat, coordinating services with Saudi authorities.

US-Iran Escalation Talks: US Secretary of State Marco Rubio said negotiations with Iran could “take a few days” even after fresh “self-defence” strikes on missile sites and boats linked to mine-laying near the Strait of Hormuz, with Rubio insisting the strait must stay open “one way or the other.” Oman Business & Finance: Oman’s OQ Gas Networks reported a 7.1% Q1 2026 net profit rise to RO 13.5m, while the Central Bank of Oman issued OMR 10m in treasury bills. Oman Road Safety: Oman banned food delivery motorcycles from using main roads, directing them to secondary routes to cut speeding and accidents. Regional Diplomacy: Qatar denied reports it offered Iran $12b to seal a US deal, calling the claims baseless. Eid & Weather: UAE forecasts near-47°C heat during Eid Al Adha, with coastal humidity and mist likely. Prison Mercy: His Majesty granted a royal pardon to 382 inmates on Eid Al Adha.

Hormuz Peace Talks Heat Up: Iran says it will not charge “tolls” for ships through the Strait of Hormuz, insisting instead on a cost-linked “safe passage” mechanism with Oman—while the US and Iran keep trading signals of progress but warn against rushing. Shipping Starts Moving Again: Oil prices slid below $100 as tankers began trickling out after nearly three months, with LNG and crude vessels reported passing toward Pakistan, China and India. Oman’s Role in De-escalation: Oman’s PM and Foreign Minister held calls with counterparts in Qatar and Iran-related mediation efforts, stressing dialogue to reduce escalation. Local Governance: Tano South Municipal Assembly held its first general assembly for 2026, focusing on allowances, mobility and local revenue. Oman News: Muscat police arrested a man for stealing a vehicle from Bausher; the Central Bank issued OMR 10m in treasury bills. Travel Boost: Sri Lanka launched free 30-day ETA visas for 40 countries, including UAE, India and Pakistan.