AGP Executive Report

Maritime Security & Diplomacy: India’s EAM S Jaishankar called US Secretary of State Marco Rubio to lodge a strong protest after a US Navy strike killed three Indian mariners off Oman, saying lethal action against commercial shipping is “not justified,” while the MEA also summoned US Charge d’Affaires Jason Meeks again over continued attacks; Shipping Safety & Misinformation: India dismissed fresh claims of deaths on the MT Liaki Freedom, saying the master confirmed all crew were safe, as officials warn that false reports are adding to fear among thousands of Indian seafarers in the Gulf; Gulf Energy Risk: Iran announced a full closure of the Strait of Hormuz in retaliation for US airstrikes, raising fears of major oil supply disruption and higher insurance costs; Oman Energy Transition: Oman’s Ministry of Energy and Minerals highlighted low-carbon efforts under Vision 2040, including carbon capture-linked oil recovery pilots and wind power projects, as the country pushes emissions cuts; Trade & Industry: India’s new FTAs are expected to boost manufacturing and supply-chain integration, with a target of $1T merchandise exports by 2030, including Oman among key partners.

Maritime Security & Oman: India has summoned US Chargé d’Affaires Jason Meeks again, lodging a strong protest over continuing US naval attacks on commercial vessels carrying Indian mariners off Oman, after three Indian seafarers were killed in strikes near the Gulf of Oman. Strait of Hormuz Watch: With Iran declaring the Strait closed and the US insisting it remains open, shipping is improvising—tankers reroute, use ship-to-ship transfers, and some “dark” movements continue—while the US says it is escorting more than 20 crude carriers on some nights. Diplomacy & Energy: As Washington and Tehran trade claims over an emerging US-Iran MoU, Iran says nuclear talks will follow within 60 days, while Trump rejects Iranian media’s reported deal terms. Business Travel & Aviation: SalamAir says it is reshaping its Gulf network amid conflict, while Oman’s aviation upgrades continue—PDO-related AI/digital wins aside, Muscat’s broader connectivity push remains in focus. Global Trade: China’s ports dominate World Bank/S&P efficiency rankings, underscoring how automation and investment help supply chains absorb shocks.

Maritime Security & Trade: Oman is in the spotlight as the US escalates pressure on Muscat to sever ties with Iran, citing claims Oman may have helped Tehran impose fees on Strait of Hormuz shipping—an issue that could raise global fuel costs and disrupt trade. Shipping Casualties: The crisis deepened after a US strike on the Palau-flagged tanker MT Settebello off Oman killed three Indian seafarers; India says 21 were rescued and three died, and has put maritime agencies on the highest alert. Diplomacy: Oman’s foreign minister held talks with the EU on de-escalation and safe, uninterrupted maritime navigation, while India summoned US diplomats and demanded attacks on commercial shipping stop. Global Response: The UN chief and the IMO condemned the tanker attack, and Iran called the strikes “state piracy.” Energy Markets: Oil prices slid after Trump said planned strikes were cancelled and a deal could be signed soon, but the US naval blockade remains in force. Port Efficiency: A World Bank/S&P study shows China dominating global port efficiency rankings, with Oman’s Salalah port placing third—highlighting why reliable regional logistics matter even more during chokepoint stress.

Maritime Security & Diplomacy: The US escalated pressure on Oman amid the Strait of Hormuz crisis, with the White House demanding Muscat sever ties with Iran over claims Oman helped impose vessel fees—an issue that could spike shipping costs and global prices. Seafarer Safety: India confirmed three Indian sailors were killed after a US strike on the Palau-flagged tanker Settebello off Oman; New Delhi summoned the US chargé d’affaires and called attacks “deeply worrisome,” while evacuations continued after a separate US strike on the Guinea-Bissau-flagged Jalveer with 20 Indians safe. UN/IMO Reaction: The UN’s maritime body (IMO) condemned the tanker strike and urged a transparent investigation. Energy Infrastructure: Trump said he cancelled “scheduled strikes” on Iran, but also renewed threats to take control of Kharg Island, keeping uncertainty high for Gulf energy flows. Oman Business & Markets: Oman’s OCCI met an IMF team, highlighting growth in non-oil sectors and industry/logistics/tourism opportunities; separately, OMIFCO’s IPO prospectus was approved, with subscriptions opening June 16. Industrial Expansion: Egypt’s FMC-Ferrometalco plans a major steel fabrication facility in Duqm’s SEZAD, targeting 25,000 tonnes of structures annually.

US-Iran Escalation: The US launched fresh “self-defense” strikes on Iran for a second straight night after blaming Tehran for the downing of a US Apache near the Strait of Hormuz, while Iran fired back and warned it would target any vessel trying to transit the strait. Shipping Shock for Oman: The renewed fighting is hitting maritime trade routes around Oman, with oil prices jumping as the ceasefire frays. Oman Maritime Industry: Hutchison Ports Sohar signed an agreement for 12 automated electric rubber tyred gantry cranes, aiming to cut emissions and boost terminal efficiency. Indian Seafarers Tragedy: India summoned the US Chargé d’Affaires over the US strike on the Palau-flagged tanker MT Settebello off Oman, where 21 Indian crew were rescued but three were reported missing—later confirmed dead—prompting calls for de-escalation and safer shipping. Musandam Food Security: Musandam is pushing food security investments across aquaculture, fisheries, agriculture, livestock and water projects, targeting self-sufficiency and future export value. Oman-UAE Connectivity: Hafeet Rail said the Oman-UAE railway project is 40% complete, with construction accelerating across key route locations.

Middle East Escalation: The US launched airstrikes against Iran after blaming Tehran for the downing of a US Apache near the Strait of Hormuz, with Trump warning the US will hit Iran “very hard” again as Iran retaliated and threatened further action. Oman Shipping Impact: India condemned a US precision strike that disabled the Palau-flagged tanker Settebello off Oman; 21 of 24 Indian crew were rescued, while three are still missing, prompting India to summon the US Charge d’Affaires and lodge a strong protest. Maritime Security & Costs: The attacks add fresh pressure on already strained Gulf shipping routes, with the Strait of Hormuz remaining a key chokepoint for global oil and gas flows. Tech in Crisis Response: US forces said a drone boat (Saronic Corsair) carried out a first-of-its-kind rescue of Apache crew near Oman, highlighting how unmanned systems are being used to speed up recovery at sea. Trade Diversification: Saudi Arabia and Türkiye signed rail and logistics MoUs aimed at reviving the Hejaz Railway as an overland alternative to Hormuz bottlenecks.

Middle East Energy Shock: The U.S. began “self-defence” strikes on Iran after a U.S. Army Apache helicopter crashed near the Strait of Hormuz off Oman, with Trump blaming Tehran and CENTCOM saying the response targeted air defence, ground control and surveillance radar sites; Iran retaliated with attacks on U.S. bases in Bahrain, Kuwait and Jordan, while IRGC claimed 21 U.S. targets hit. Hormuz Disruption Watch: The renewed fighting is again rattling shipping and energy flows through the world’s key chokepoint, with gas and oil prices spiking and fears of higher fuel costs. Oman in the Spotlight: Commentary highlights mounting U.S. pressure on Oman to abandon neutrality amid claims Oman may be involved in vessel tolling—an issue that could raise shipping costs and reshape regional leverage. Autonomous Rescue Milestone: In a first-of-its-kind operation, a U.S. Navy drone boat rescued the two Apache crew members after the crash, underscoring how unmanned systems are changing maritime response. Oman Shipping Business: Asyad Shipping divested its Sohar LNG carrier for about $23m as part of fleet renewal. Infrastructure & Trade: Afcons Infrastructure won a major breakwater contract for India’s Vadhvan Port, a reminder of how global trade projects keep moving even as Hormuz risk rises.

Oman Investment & Finance: Oman is pushing to lock in global capital with an International Financial Centre of Oman (IFC Oman) framework, backed by an investment-grade credit rating and a board appointed by Sultan Haitham to strengthen licensing, regulation and dispute resolution. Energy & Shipping Risk: The Strait of Hormuz remains a flashpoint after Iran was blamed for downing a US Army Apache helicopter near Oman; a US drone boat rescued the two pilots, while markets watch for wider disruption. Geopolitics Hits Commodities: Gold slid further as renewed Middle East tensions revived inflation fears and rate worries, with oil also reacting to the latest Hormuz-linked developments. Green Hydrogen Pipeline: Oman’s Duqm green hydrogen project is moving ahead, with phase 2 and 3 commercial operations targeted for 2030 and 2033, supporting large-scale ammonia and hydrogen output. Local Industry & Food Security: OCCI held a “From Farm to Factory” seminar to link farmers and national factories, aiming to strengthen supply chains for a sustainable food future. Infrastructure Updates: Salalah’s Al Mughsail Road and Bridge project is 85% complete, with traffic expected to open in early July. Freelancing & Jobs: Oman is expanding freelance access to finance and government tenders, aligning with Vision 2040 to create more flexible work opportunities.

Investment & Courts: Oman is boosting investor confidence with a specialised Investment and Trade Court, with officials saying a clear, fast dispute system and alternative resolution options help protect rights and speed decisions. Energy Prices: Oman’s official crude price for August rose $2.49 to $93.38 a barrel as Middle East tensions keep oil markets jumpy. Oman–India Trade: As CEPA enters its first week, Indian business talk is shifting toward Oman’s ports, stability and geography as a “reliable” bridge linking the Gulf, Africa and the wider Indian Ocean. Duqm Investment Push: Oman signed RO 2.9bn ($7.5bn) in Duqm Special Economic Zone deals, including ACME’s green hydrogen phases 2 and 3 (about $4.2bn), plus power, ammonia, battery materials, chemicals, tourism and housing. Environment to Economy: A new Oxford Business Group report with Oman’s Environment Authority argues stronger environmental governance can improve investment confidence and resilience as Vision 2040 advances. Shipping Safety & Tensions: All 24 Indian crew on the tanker MT Marivex were rescued after a fire off Oman; the incident followed a US action tied to the Iran-linked blockade, underlining how quickly maritime risks are rising around Hormuz. Strait of Hormuz Toll Debate: Iran’s ambassador says Iran and Oman would set conditions like transit fees for ships, while Oman continues to oppose toll-based systems and backs freedom of navigation.

Strait of Hormuz & Energy Security: Oil markets stayed jumpy as Israel-Iran tensions flared again, keeping supply-route fears front and centre; Iran’s ambassador said Hormuz will reopen but with new Iran-Oman transit conditions and fees, while U.S. officials warned Oman against tolling. Oman in the Spotlight: Oman’s crude price for August rose to $93.38/bbl as Hormuz uncertainty lifted benchmarks. OPEC+ Output Call: Seven OPEC+ countries agreed to raise July output by 188,000 bpd, though analysts said the physical impact may be limited while Hormuz remains constrained. Shipping Safety in Oman Waters: A Palau-flagged tanker, MT Marivex, caught fire off Oman near Masirah; India confirmed all 24 Indian crew were safe after rescue/evacuation, while authorities investigated whether a projectile was involved. Oman Business & Investment Climate: Oman moved to boost investor confidence with plans for a specialised investment and trade court. Net-Zero & Agriculture: Oman highlighted smart agriculture steps to cut emissions and improve water and fertiliser efficiency, alongside an Environment Atlas launch to strengthen environmental planning.

Middle East Energy Shock: Oil prices surged as Israel hit Iran’s Mahshahr petrochemical complex and renewed strikes rattled Lebanon, pushing Brent above $97 and WTI above $94, while markets fretted about longer Strait of Hormuz disruptions. OPEC+ Signals vs Reality: OPEC+ approved a fourth straight July output quota hike of 188,000 bpd, including Oman, but analysts say it may be mostly symbolic while Hormuz remains constrained. Oman’s Energy Numbers: Oman reported 4.6% growth in natural gas output to 18.77 billion cubic metres by end-April, with higher associated and non-associated production. Shipping Pressure Points: Iran floated reopening the Strait of Hormuz under new conditions and fees, while Houthis vowed to ban Israeli navigation in the Red Sea—raising risks for regional logistics. Oman Renewables Push: Nama PWP invited bids for project management and supervision for the 300 MW Marsa Solar IPP, with submissions due July 26. Customer Experience in Focus: Oman CX Forum & Awards 2026 is set for June 10 in Muscat, bringing industry leaders to discuss customer experience and digital-first engagement.

Energy & Markets: OPEC+ ministers agreed to lift July oil output quotas by 188,000 barrels per day, including Oman, in a fourth straight monthly increase—though analysts say it may be mostly symbolic while the Strait of Hormuz stays closed and physical barrels remain hard to move. Oman Energy Transition: Nama Power and Water Procurement Company invited bids for project management and supervision for the 300MW Marsa Solar IPP, covering construction, testing, commissioning and handover, with submissions due July 26. Industrial Competitiveness: Oman launched the first phase of the Kafaah Competence Program for Manufacturing to boost smart manufacturing readiness, with participating factories required to deliver Lean Six Sigma projects before qualifying workshops and Green Belt certification. Climate & Environment: The Environment Authority launched the Oman Environment Atlas to support planning and a digital environmental system, while Muscat’s council reviewed net-zero progress through the Oman Net Zero Centre. Food Safety: Oman marked World Food Safety Day, stressing traceability and faster market withdrawal of non-compliant products. Governance: Majlis Ash’shura will discuss a proposed draft law on alternative penalties and measures.

Strait of Hormuz Risk: With US-Iran talks still shaky, analysts warn a prolonged Hormuz shutdown could stretch until September, reshaping trade costs and supply chains across the Gulf. OPEC+ Watch: OPEC+ meets to consider higher output quotas to cool prices after the Iran-linked choke on Gulf crude, but analysts say geopolitics will likely blunt any impact. US-Iran Finance Pivot: The US Treasury is reportedly looking to use frozen Iranian assets to help rebuild Gulf allies’ war-damaged infrastructure, a move that could complicate negotiations. Sanctions on Energy Smuggling: OFAC sanctioned an Iranian LPG network that allegedly disguised shipments as Omani gas, targeting firms and tankers across the UAE and Asia. Oman Market & Business: Muscat Stock Exchange kept trading above OMR 1bn for a fourth straight month in May, even as the main index slipped. Oman Energy & Industry: Track installation has started on the Hafeet Rail project linking Sohar Port to the UAE, while Duqm Refinery posted RO 106m EBITDA in 2025. Green Push: Oman is accelerating EV charging at hotels and expanding climate and aviation sustainability efforts.

MSX Market Pulse: Muscat Stock Exchange kept trading value above OMR1bn for a fourth straight month in May, with OMR1.0478bn in trades and activity concentrated in OQ Basic Industries, Bank Muscat, Bank Sohar International, OQ Exploration and Production and Omantel. Electric Mobility: Oman is pushing EV adoption by expanding charging stations at 3- to 5-star hotels, with more points highlighted around Jabal Akhdhar to support sustainable tourism. Corporate Law: Oman’s Commercial Companies Law sets a strict process for limited liability companies to increase share capital, including unanimous shareholder approval and preemptive rights for existing owners. Climate & Sustainability: Oman is stepping up its climate action framework around World Environment Day, with the Environment Authority coordinating national climate programmes and sector integration. Aviation Decarbonisation: The Civil Aviation Authority is advancing sustainability through updated regulations, emissions tracking and incentives for cleaner technologies and SAF. Hydrogen & Energy Corridors: Gasunie backs Oman’s liquid hydrogen corridor plans linking Duqm to Northwest Europe, while Oman also explores geological hydrogen as a research-stage opportunity. Rail & Industry: Track installation has started on the Hafeet Rail project connecting Sohar Port to the UAE rail network, moving the project into the infrastructure phase. Oil & Trade Risk: Oil prices eased as US-Iran de-escalation hopes grew, while Oman said Mina al Fahal operations were normal after a reported explosion. SME & Jobs: OCCI will hold a freelancing seminar on June 9, focusing on the legal setup and incentives for independent workers in Oman’s digital economy.

Oman–India Trade & Ports: As Oman’s India-Oman CEPA kicks in (from June 1), Sohar, Salalah and Duqm are being positioned as key gateways for Indian exporters and investors into West Asia and Africa, with Sohar adding a bulk agricultural terminal and a food cluster to deepen agri trade. Environment & Climate: Oman marked World Environment Day with renewed focus on biodiversity, afforestation, pollution control and youth-led awareness, including tree-planting and Dhofar initiatives tied to Khareef. Industrial Safety: A fire broke out at a paper factory in Sohar, prompting emergency response and public advisories to stay clear. Energy & Markets: Oil traders reacted to reports of an explosion near Mina al Fahal’s mooring berths, but Oman and PDO said operations were proceeding normally after a brief loading suspension, helping steady crude sentiment. Strait of Hormuz Risk: US forces shot down four Iranian drones and struck coastal radar sites near Hormuz, while the US Treasury also sanctioned an LPG smuggling network accused of disguising Iranian fuel as Omani exports—raising the stakes for regional shipping and energy flows. Sports (Local Interest): Oman’s T20I team booked a historic Asian Games berth despite a heavy loss to Hong Kong, setting up a semi-final against Nepal.

Oman Energy & Trade Disruption: Petroleum Development Oman said Mina al Fahal operations are proceeding normally after an explosion near mooring berths, though Reuters earlier reported crude loading was suspended following a suspected drone attack; the terminal exports about 800,000–900,000 bpd, so any hiccup is closely watched by regional markets. Strait of Hormuz Tensions: Iran claims it fired warning missiles and drones at US destroyers in the Gulf of Oman, while the US denies any attack and says it continues enforcing a blockade; the standoff is keeping shipping and energy risk premiums elevated. Oil Markets: Oil prices slipped as traders leaned toward de-escalation hopes, even as Iran’s blockade pressure and Hormuz uncertainty continue to rattle supply expectations. Sanctions & Shipping Networks: The US Treasury announced fresh sanctions on an Iranian-linked network accused of smuggling LPG using UAE/China front firms, falsified shipping records and “shadow fleet” vessels. Food Security: The UN World Food Programme warned the West Asia conflict is pushing millions toward hunger as fuel and transport costs rise and aid funding falls, with Afghanistan and Somalia among the hardest hit. Oman Business & Logistics: Asyad Group moves to expand its logistics footprint with acquisitions and partnerships in Uzbekistan, reinforcing Oman’s role in regional trade corridors.