AGP Executive Report

Strait of Hormuz Tensions: US forces struck two Iranian rocket launchers on Larak Island after IRGC personnel were seen preparing sea-mine rockets, ending a month-long lull. Iran’s Revolutionary Guards vowed “response and punishment,” as reports also flagged a tanker hit by an unknown projectile near Oman’s Khasab with no casualties or environmental damage reported by UKMTO. Oman Banking Watch: Oman’s banks extended loans beyond their deposit base, with the loan-to-deposit ratio at 102.9% by end-June; private deposits rose 12.45% to OMR 19.37bn. Inflation Snapshot: GCC inflation stayed subdued, but Oman’s inflation climbed 3.2% year-on-year in July, driven mainly by food and transport. Local Development: Oman’s Musandam road project is 76% complete, aiming to cut Khasab–Dibba travel time to 55 minutes. Sports: Oman opened its ACC Men’s Premier Cup campaign with a win, while Oman’s football and volleyball teams continue regional preparations.

Festival Tourism: Oman’s Jabal Akhdar Festival 2026 has drawn over 300,000 visitors over 45 days, with cultural, entertainment, sports and family events running from 15 July to 29 August in Al Dakhiliyah. Power Update: Oman’s total electricity generation rose 4.5% by end of July 2026 to 31,732.5 GWh, with Muscat up sharply (197.4%) and net electricity production up 4.9% to 30,866.7 GWh. Learning Survey: NCSI has started a survey to measure lifelong learning across Muscat, Nizwa and Sur, interviewing 1,200 Omanis aged 18+ to map access, participation and skills. Integrity Forum: Madayn is holding a two-day awareness forum on institutional integrity with a focus on protecting public funds and avoiding conflicts of interest. Telecom Rules: Oman TRA issued new number portability regulations and a framework to automate transfers, set time-bound procedures and boost competition while keeping customers’ numbers. Cybersecurity Strategy: Oman has rolled out a national cybersecurity strategy for 2026–2030 to strengthen protection of critical infrastructure and digital resilience. Road Safety: Six people were killed and 18 injured in a multi-vehicle crash in Samail, prompting an investigation by the Transport Safety Office. Consumer Protection: Oman’s Consumer Protection Authority in Dhofar seized 2,763kg of expired fish after date manipulation was detected. Used Parts Ban: Oman bans trade in 21 categories of used vehicle spare parts, tightening warranty and disclosure rules for consumers. Strait of Hormuz Diplomacy: Iran says its understanding with Oman on a temporary Hormuz transit route will only be implemented if the US fulfills its commitments, while Tehran insists the strait remains closed without coordination.

Strait of Hormuz Talks: Iran says its transit understanding with Oman is reached, but Hormuz stays closed until the US fulfills commitments under the Islamabad MoU, with Tehran insisting any passage needs its coordination and “full oversight.” US Claims vs Iran Response: The White House and CENTCOM maintain the US controls the strait after mine-clearing and protection of commercial traffic, while Iran’s Revolutionary Guards reject the claims and link reopening to an end to US military actions. Oman Maritime Safety: A VLCC wreck off Dhofar’s Hallaniyat Islands, the Caroline Bezengi, remains intact but still leaking crude; forecasts show Khareef conditions with rough seas likely to worsen from early September. Road Tragedy in Oman: Six women were killed and 18 injured in a Samail multi-vehicle crash after a steel-coil truck overturned; an investigation has been launched. Oman Economy: Oman’s GDP grew 2.6% in real terms in Q1 2026, with petroleum expanding faster than non-oil activity. Energy & Tourism: Duqm’s renewable push advances with new wind projects, and Salalah hosts a halal tourism workshop as Oman expands tourism options.

Strait of Hormuz Talks: Iran and Oman say they’ve agreed a temporary corridor for ships through the Strait of Hormuz, but Tehran links any wider reopening to US commitments, while Iran’s IRGC Navy rejects US claims the waterway is open and says transit without coordination won’t be allowed. Oil & Markets: The Hormuz standoff continues to rattle crude prices and investor sentiment, with Oman’s MSX 30 edging up weekly as banking shares lift the index. Oman Investment Push: Oman’s “Invest in Oman” platform unveiled five Dhofar opportunities worth about OMR1.95bn, including a major integrated “Future Salalah City” plan. Regional Economy: Oman and Saudi Arabia will review progress on joint economic initiatives at a Salalah meeting focused on trade, investment and industrial integration. Banking Snapshot: Private deposits at Oman’s banks rose 12.45% to over OMR19bn by end-June 2026. Water & Climate: A UN water symposium on sustainability and climate change opens in Salalah, spotlighting floods, drought, aflaj protection and water tech. Public Safety: Oman’s oil and gas sector is strengthening health, safety and environmental standards, while authorities seized over 3,000kg of drugs in Dhofar. Disaster Update: Nepal’s flash-flood death toll climbed to 626 with more than 2,400 missing as evacuations continue.

Strait of Hormuz Talks: Iran’s President Masoud Pezeshkian says Tehran and Oman have agreed a passage route through the Strait of Hormuz, but reopening hinges on the US meeting commitments under the June Islamabad MoU, including lifting sanctions and blockade, releasing frozen assets, starting investment, and ending the Lebanon war. Diplomacy vs Pressure: Iran’s FM Abbas Araghchi says “pressure doesn’t work” and points to Qatar and Pakistan-led mediation as talks gather pace, while the US keeps escalating “economic warfare” and denies direct Iran talks. Oman-US Regional Link: Iraq’s foreign minister held a call with Oman’s counterpart on Hormuz understandings and the impact of new US sanctions on regional stability. Shipping and Oil Impact: US CENTCOM claims mines have been cleared and lanes are open, but international safety monitors still urge caution; meanwhile, Gulf producers are ramping tanker flows, easing some supply fears. Local Economy Angle: With renewed hopes of Hormuz reopening, fuel price rollbacks are being discussed for next week, potentially easing pump costs.

Hormuz Diplomacy: Iran says “pressure doesn’t work” and is preparing conditions to reopen the Strait of Hormuz, after talks with Qatar in Tehran and ongoing discussions with Oman. US Blockade Claims: CENTCOM says it cleared Iranian sea mines from internationally recognized lanes and that commercial traffic is moving again, while the US also ramps economic pressure with expanded secondary sanctions. Shipping Reality Check: Despite US claims of a “functional” strait, tracking data shows traffic remains far below normal—around a dozen vessels a day in recent reports—keeping oil flows choppy and prices on edge. Regional Mediation: Qatar is pushing for freedom of navigation and a phased framework, including a temporary corridor linked to Oman, as Washington says it is not holding talks with Tehran. Oman Angle: Reports say Iran and Oman are nearing a corridor and mine-clearing arrangements, but reopening hinges on US steps, including sanctions relief and port access. Markets Watch: Oil prices stayed pressured on the week as Hormuz hopes rose and stalled, while investors awaited major central bank remarks.

Hormuz Diplomacy in Focus: Qatar’s PM and foreign minister Sheikh Mohammed bin Abdulrahman Al Thani met Iran’s top officials in Tehran, pushing an interim framework with Iran and Oman to de-escalate and manage the Strait of Hormuz, with talks stressing freedom of navigation and a proposed Hormuz plan tied to mine-clearing and a temporary corridor. Oman-Iran Shipping Talks: Iran’s security chief Mohsen Rezaei said Tehran is preparing a list of conditions for reopening Hormuz and confirmed an agreed shipping corridor with Oman, with parts in Omani and Iranian waters and a central channel if US demands are met. US Economic Pressure: Multiple reports say Washington is not engaging in meaningful talks with Iran and is intensifying “economic asphyxiation” and secondary sanctions, complicating any path to a wider deal. Maritime Security Still Tight: UKMTO reported a tanker hit by an unknown projectile near Oman’s Khasab, with fire contained and no environmental damage reported, while traffic remains far below pre-war levels. Energy Markets Watch: Oil prices moved on shifting hopes and doubts over Hormuz reopening, with traders weighing diplomacy stumbles against ongoing supply risks.

Strait of Hormuz Security: A tanker near Oman’s Khasab was hit by an “unknown projectile,” sparking a fire that was later extinguished, with UKMTO saying crew were safe and authorities are investigating. Oman-Iran Shipping Talks: Oman and Iran continue working on a temporary Hormuz corridor and mine-clearance framework, while Tehran stresses any reopening depends on US conditions; Qatar’s PM is also set to push de-escalation in Tehran. Oil Market Impact: Brent and WTI extend losses as diplomacy hopes grow, but shipping remains far below pre-war levels, keeping energy risk premium elevated. Regional Energy Workarounds: Iraq’s SOMO is offering Basrah crude via ship-to-ship transfers off the Omani coast, letting buyers avoid transiting Hormuz. Oman Development Focus: Oman’s Industrial Strategy 2040 is moving ahead with smart manufacturing and 30 priority industrial activities across key clusters. Oman Aviation/Travel: Wizzmoni and Oman Air launch an AI-powered “Voyager” card to blend travel and payments. Sports: UAE cricketer Asif Khan gets a 15-month ICC ban after a positive out-of-competition test.

Salalah Airport Expansion: SalamAir will set up its first permanent airline base at Salalah, boosting connectivity for Dhofar. Hormuz Diplomacy: Iran and Oman keep working on a temporary Strait of Hormuz corridor plus mine-clearing, with Tehran saying the waterway won’t reopen unless US demands are met, while Oman remains “hopeful” about practical arrangements. Revenue and Control Talks: Iran’s IRGC says revenue-sharing is agreed, but Reuters reports final terms are still not locked, as Iran also warns military vessels could be barred. Regional Mediation: Qatar plans a Tehran visit to restart diplomacy, while markets watch for any shift in shipping risk. Oman in the Mix: Oman’s role in navigation talks continues to draw international attention, as shipping activity stays far below normal and oil prices react to every update.

Oman-Iran Strait of Hormuz talks: Iran and Oman say they’ve agreed a phased framework for a temporary shipping corridor through the Strait of Hormuz and joint mine-clearing, aimed at restoring safer commercial navigation while military vessels would be excluded; Iran also insists the strait is not fully reopened and warns it could stay closed if conditions aren’t met. Energy and markets: The deal hopes helped push oil lower, with Oman’s official crude price for October falling to $86.41 (down $5.45), while Brent and WTI slid as global investors watched the next steps in Hormuz talks. Oman economy and industry: Oman’s industrial sector is seeing a shift toward higher-value manufacturing and technology-linked growth under Industrial Strategy 2040, alongside gains in non-oil exports and re-exports. Households facing higher bills: Energy costs remain a concern as households are warned of tougher times with rising energy bills. Local community and tourism: Al Jabal Al Akhdar hosted a meeting on how local communities can drive sustainable tourism development. Education and youth: OQ Group wrapped up its Energy Pioneers Summer Programme 2026, training more than 270 children through hands-on STEM, safety and sustainability activities. Aviation incident: A passenger died after falling ill on a Biman flight from Jeddah to Chattogram, with the aircraft diverted to Muscat.

Strait of Hormuz Diplomacy: Iran and Oman say they’ve agreed a phased plan for a temporary joint shipping corridor and a joint mine-clearing project to restore safe navigation through the Strait of Hormuz, with technical talks continuing toward a longer-term arrangement. US-Iran Pressure & Shipping Risk: The talks come as the US expands sanctions on Iran and Trump reiterates claims that mines have been cleared, while a tanker off Oman was disabled after an “unknown projectile” hit its engine room, underscoring how fragile maritime safety remains. Commercial Rules Tighten: Iran says the temporary understanding would allow only commercial vessels on the designated route, barring military ships, and Iran has blacklisted 45 “non-compliant” vessels, including two Indian ships. Markets Watch: Oil prices fell more than 3% to a one-week low as traders bet economic pressure may reduce the chance of military escalation, while gold edged higher on softer yields. Oman Sports & Society: The Olympic Council of Asia named a two-athlete “Asian Refugee Team” for taekwondo at the Asian Games, with Oman’s flag to be raised first in the hall.

Strait of Hormuz Security: A UKMTO report says an oil tanker was hit by an unknown projectile off Oman near Musandam, damaging the engine room and disabling the vessel; no casualties were reported, and authorities are investigating while shipping lanes and the “Oman Route” remain under negotiation. Sanctions and Oil Markets: Brent and WTI slid to a one-week low as investors treated the latest U.S. Iran sanctions as less disruptive than military escalation, with traders focusing on supply stability. Diplomacy Watch: Reports say the U.S. may start returning evacuated diplomats to posts including Oman, while Pakistan’s mediator role continues as Iran and the U.S. remain deadlocked. Oman Business & Tax: Deloitte and the Oman Tax Authority will co-host Oman Tax Conference 2026 in Muscat on Sept 15. Renewables in Musandam: Nama Power and Water Procurement Company launched a consultancy tender for a renewable energy feasibility study in Musandam. Sports & Culture: ROP won first place at an international tactical shooting championship; Oman’s national basketball team begins Asian Cup qualifiers against Kuwait; Sultan Qaboos Institute welcomed new Arabic-learning students; Onam celebrations are underway for Kerala expats across Oman.

Maritime Security: UKMTO says an oil tanker off Oman was struck by an unknown projectile near Ash Shishah; damage reported to the engine room, crew safe, and authorities investigating. Hormuz Pressure: Iran has published a “non-compliant” blacklist of 46 vessels, warning of fines, detention and seizure; at the same time the UN chief offered to facilitate fertiliser transit through the Strait via a neutral mechanism coordinated by Oman. US Sanctions: US Treasury Secretary Scott Bessent unveiled “Operation Economic Outcast,” warning countries doing business with Iran to sever ties or face retaliation, as markets react to oil price moves. Oman Tech & Health: Oman’s AI diabetic retinopathy screening project has reached 43,000+ patients, aiming to detect complications early and reduce vision loss. Sports: Oman’s Al Shabab has been drawn in Group A of the 2026-27 Gulf Club Champions League, facing Al Duhail, NEOM and Yemen’s Shaab Hadramaut.

Oman-Iran Diplomacy: Oman’s Foreign Minister Sayyid Badr Al Busaidi is set to visit Tehran on Tuesday to continue talks with Iran on regional issues and the Strait of Hormuz, as both sides work toward a memorandum for safer maritime traffic. Hormuz Tensions: Iran warned vessels against violating its Hormuz transit rules, saying fines, detention and confiscation could follow, while Iran’s parliament committee approved a plan to charge ships transit fees. US Sanctions Push: The US is preparing to unveil “economic D-Day” sanctions targeting Iran and partners, with Treasury Secretary Scott Bessent saying the campaign is the “greatest financial offensive” and Iran warning it could halt Gulf oil exports. Oman Policy & Economy: Oman has stopped renewing work permits for expatriates over 60, reversing a 2022 rule. Local Business & Culture: Deloitte and the Oman Tax Authority will co-deliver the Oman Tax Conference 2026 on Sept 15, and Oman’s Heritage and Tourism Ministry will host an ICESCO delegation in Dhofar for the “Civilization Bridges” programme. Health Tech: Oman’s AI national project has screened over 43,000 diabetic patients for diabetic retinopathy, flagging more than 12,000 high-risk cases.

Strait of Hormuz Tensions: Iran escalated its pressure campaign by publishing a “Non-Compliant Vessels” blacklist, warning ships could face fines, detention, seizure or confiscation, as Tehran also pushes for transit fees and warns neighbors that supporting new US economic measures would be treated as an “act of war.” Oman-US Diplomacy: Amid Oman’s talks with Iran on reopening safe navigation, the US Ambassador to Oman Ana Escrogima met Omani officials in Muscat to advance collaboration and regional stability. Oil Spill Response: Salvage efforts continue for the stricken tanker Caroline Bezengi, which has been leaking oil off Oman’s Dhofar coast since late June, with cleanup operations being prepared. Energy Trade Link: Pakistan’s ECC is set to approve a PSO-OQ Oman petroleum products deal, with discussions also focused on strengthening bilateral energy cooperation. Local Life & Safety: Royal Oman Police arrested a suspect after a fatal shooting in Al Haymah. Economy Watch: Oman’s public revenues rose 13% in Q2 2026 to about OMR6.6bn, driven mainly by higher oil and gas income.

Oman Economy: Oman’s public revenues rose 13% to about OMR6.602 billion by end-Q2 2026, driven mainly by higher oil revenues, while total public expenditure reached about OMR6.619 billion. Governance: Governors’ Forum meetings began in Salalah to boost cooperation among governorates, exchange expertise and align efforts with Oman Vision 2040. Environment & Waste: A two-day workshop in Salalah is reviewing a draft national strategy for integrated waste management, aiming for a sustainable, circular-economy approach. Tourism in Dhofar: “Salalah Eye” opens as a new 55-metre panoramic attraction at Al Haffah Beach for Khareef 2026, with enclosed air-conditioned cabins. Road & Weather: Oman recorded extreme heat up to 46.2°C; Sunday forecasts warn of dust, possible thunderstorms in Al Hajar and wadi risks. Transport & Business: SalamAir launched ticket sales for a new Muscat–Erbil direct route starting Oct 25, 2026, and NBO ran an SME Growth Program workshop in Muscat. Public Safety: Royal Oman Police arrested 12 people in Musandam for illegal entry; one Indian was killed and nine injured in a vehicle accident in Oman. Regional Watch (Hormuz): Reports say Strait of Hormuz traffic has surged nearly 400% as more ships use a U.S.-backed Omani corridor, while Iran warns it will treat countries joining U.S. economic pressure as enemies.