AGP Executive Report

Oman Economic Relief: Oman’s Government Communication Center announced a package of measures to cushion geopolitical shocks, including stabilising electricity tariffs for food-security sites at 12 baisas/kWh until Dec 2026, support for maritime transport of food imports from Indian ports for six months, and keeping rebar import duties at 5% while postponing a 4% tourism levy for three months. Hormuz Uncertainty: Despite US-Iran claims of a preliminary deal to reopen the Strait of Hormuz, shippers warn full normalisation could take weeks or even months as minesweeping and safety checks continue, with hundreds of vessels still waiting in the Gulf. Energy Route Rumours Denied: India’s Petroleum Ministry rejected reports of a Middle East–India deep-sea pipeline linking Gujarat with Oman, saying there are no active discussions with Oman. Maritime Security: A Reuters report says a US Apache downed near Hormuz on June 9 was linked to a secret ship-to-ship oil transfer operation to keep Gulf exports moving. Tourism Project Update: Muttrah Cable Car is 90% complete, with trial operations planned for December.

Strait of Hormuz Peace Update: The US and Iran have signed a memorandum of understanding to end the war and reopen the Strait of Hormuz for 60 days, with ships expected to transit toll-free while key details—like nuclear limits, sanctions relief and possible future fees—remain unclear; US officials say Iran must meet obligations before any economic benefits, while Iran says Lebanon’s war must be part of the deal. Oman’s Role: Oman’s Cabinet welcomed the US-Iran understanding, reiterating Muscat’s balanced, neutral stance and its commitment to maritime safety and freedom of passage in its territorial waters. Shipping Relief, Still Cautious: Relief is building for seafarers and trapped vessels, but analysts warn oil and cargo flows may take weeks or months to fully resume as captains, insurers and crews assess risks. Maritime Safety for Indians: All 20 Indian crew members of MT Jalveer, evacuated after an attack off an Oman port, have returned home safely, with thanks to Omani authorities and the Indian mission. Local Governance & Society: Oman confirmed the Muharram crescent moon for June 16, and Royal directives are moving forward on adding women’s seats in Shura across governorates. Private Sector Push: Oman’s Economic Coordination Council is set to boost private-sector participation in growth, aligning with Vision 2040 goals.

US-Iran Peace Framework: The US and Iran say they’ve reached a framework deal to end the war, lift the US naval blockade, and reopen the Strait of Hormuz, with a signing set for June 19 in Switzerland; markets cheered, but analysts warn the details—especially nuclear talks and any future transit fees—remain messy. Hormuz Transit Fees Debate: Iran claims the draft includes a future role for Iran and Oman in navigation services and a 60-day waiver before any fees, while the US says passage will be toll-free—raising fresh uncertainty for shipping and costs. Oman Maritime & Security: Oman is again at the center of Hormuz dynamics, including reports of US pressure on Muscat over alleged collusion on fees. Khareef Dhofar 2026 Travel Boost: Oman’s Civil Aviation Authority confirmed readiness for Khareef Dhofar 2026 (June 21–Sept 20), with increased Muscat–Salalah capacity by Oman Air and SalamAir. Indian Seafarers Off Oman: The Indian embassy in Muscat says all 20 crew rescued from MT Jalveer have returned home after evacuation coordinated with Omani authorities. Local Business & Events: Muscat will host the Rex Fuels Global Expo & Conference 2026 on July 27 at the Grand Millennium Hotel.

Maritime Rescue in Oman: The US Navy says it helped rescue 14 Indian mariners after the Indian-flagged dhow MSV Virat 1 sank off Oman due to engine failure; the crew was moved to MV Jabal Ali 9 and is safe and heading to Mumbai, with Omani authorities coordinating the response. Diplomacy and Regional Tensions: Oman’s Foreign Minister Sayyid Badr bin Hamad Al Busaidi met China’s Middle East envoy Zhai Jun to discuss regional and international developments, including keeping maritime navigation safe through the Strait of Hormuz. Energy and Security Watch: As the US and Iran near a proposed framework deal, Iran has circulated competing versions and pushed back on claims of an imminent signing, with hardliners warning the text could still allow “Iranian arrangements” affecting passage fees. Local Development: Muscat Municipality has started construction on the Muttrah Square waterfront landmark, featuring a pedestrian bridge and a new public plaza. Environment Rule Update: Oman’s plastic bag ban enters its fifth phase from July 1, expanding restrictions to more types of shops and services.

Maritime Rescue Off Oman: The Indian Embassy in Muscat says it is monitoring the incident involving the Indian-flagged vessel Virat 1, with search and rescue coordinated with Omani authorities after reports of 14 Indian crew members in danger. US-Iran Tensions and Hormuz Warnings: Iran’s IRGC warned ships near the Strait of Hormuz to stay put, saying the waterway is “completely closed,” even as US officials and Trump claim a peace framework could be signed soon and the strait would reopen after. Seafarer Deaths and Political Fallout: India’s opposition leaders, including Rahul Gandhi and Mallikarjun Kharge, attacked Prime Minister Modi over the government’s response to US strikes that killed Indian sailors near Oman, while India continues protests through diplomatic channels. Oman Domestic Focus: Oman Sail wrapped up the second SailFree programme with 157 participants and a new para-inclusive national team, and Oman’s key summer tourism festival in Al Dakhiliyah is set to run from mid-July to end of August. Cybersecurity and Training: Omantel and PwC Middle East launched CISO100 Oman to develop the next generation of cybersecurity leaders.

Oman and the Strait of Hormuz: The U.S. says it will not tolerate violations of its blockade in the Strait of Hormuz, warning all commercial vessels to comply with U.S. orders, as India escalates protests over U.S. strikes that killed three Indian mariners off Oman. Diplomatic pressure: India’s EAM S Jaishankar spoke with U.S. Secretary of State Marco Rubio, calling lethal attacks on civilian shipping “not justified,” while Washington doubles down on enforcement. Oman’s response to regional risk: A separate report claims the White House is escalating pressure on Oman to sever ties with Iran, tied to allegations about fees on transiting vessels. Energy and climate: Oman says it is boosting oil and gas efficiency, expanding renewables, and cutting emissions under its net-zero push. Health and society: Oman marks World Blood Donor Day with rising blood collections, and urges stronger colorectal cancer prevention as cases climb. Travel and business: Oman Air and SalamAir add six new summer air links, boosting routes from Muscat and Salalah. Sports/entertainment: Zain Esports powered a PUBG MOBILE championship across seven countries including Oman.

Oman in the Middle East spotlight: Iran says it may use military force to secure the Strait of Hormuz if needed, while talks with Oman on a new “administration regime” are under way. Gulf shipping tensions: The US and Iran both signal a deal to end the war is close, but fighting continues as US forces shoot down Iranian one-way drones and keep the strait open for transit. India-Oman maritime fallout: India’s EAM S. Jaishankar protested to US Secretary of State Marco Rubio over US Navy strikes that killed three Indian seafarers near Oman, calling lethal action against commercial shipping “not justified.” Misinformation pushback: India’s MEA and the seafarers’ union dismissed fresh claims of deaths on the MT Liaki Freedom, saying all crew were safe after direct contact. Oman finance: Bank Nizwa’s sovereign sukuk issuance for Oman’s Ministry of Finance drew about RO250m in demand for a RO120m deal. Oman diplomacy & society: Oman launched the “Muscat Plan” at the UN to tackle hate speech and boost social cohesion, and marked World Blood Donor Day with renewed calls for regular donation.

Maritime Security: India has again summoned the US Chargé d’Affaires, Jason Meeks, protesting repeated US strikes on commercial vessels with Indian crews off Oman, after three Indian sailors were killed this week; New Delhi calls the attacks “unacceptable” and urges steps to prevent civilian deaths. Hormuz Tensions: As US-Iran diplomacy stays in flux, Iran has announced a full closure of the Strait of Hormuz in retaliation for US airstrikes, while Washington insists shipping can still move via “safe pathways,” leaving insurers and shipowners on edge. Deal Whiplash: Trump says Iran’s leaked “peace deal” terms are “fake” and “dishonourable,” while Iran rejects the accusations as baseless; Pakistan’s PM says a final text is agreed, but details and sign-off remain disputed. Regional Finance: The UAE is reported to be unlocking billions of dollars for Iran as part of de-escalation talks, with amounts cited up to $20bn. UN Rights Focus: The UN chief launched Oman-led Muscat Plan of Action to tackle hate speech and prevent atrocity crimes, highlighting traditional and Indigenous leaders’ role in social cohesion. Oman Business: Oman’s OMIFCO sets an IPO price range to raise about $678m, as the Sultanate continues pushing investment and market reforms.

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.