AGP Executive Report

Oman Energy & Shipping: Oman’s PDO has signed a three-year integrated drilling services deal with Weatherford for 274 wells in Marmul and Greater Saqar, aiming for about 20% cost reduction and higher execution efficiency. Gulf Energy Security: The US is proposing a $10bn fund to repair Iran-war-damaged Gulf energy infrastructure and reduce reliance on the Strait of Hormuz, seeking $5bn from eight partners including Oman. Maritime Disruption Watch: Strait of Hormuz traffic remains thin as tensions persist, with commodity vessel crossings down sharply over the weekend, while tanker rates and shipping costs stay elevated. Fuel Prices Pressure: Diesel is expected to surge in the Philippines, reflecting how Middle East conflict and supply constraints are feeding into pump prices. Regional Conflict Update: UN officials condemned continued Houthi attacks on Saudi Arabia and said Yemen envoy Hans Grundberg is in Muscat for talks. Oman Business & Industry: Asyad Shipping is selling three older tankers for about OMR68.44m to speed fleet renewal, while Oman’s logistics and industrial connectivity continues to expand.

Oman Economy & Business: Oman’s Ministry of Economy held an Economic Readiness Forum on inflationary pressures, focusing on how energy, food, geopolitics, freight and raw-material swings can quickly spill across sectors. Oman Industry Data: Oman’s producer prices jumped 32.7% in Q2 year-on-year, led by higher crude oil and natural gas prices, plus a 40.3% rise in manufacturing prices. Legal & Investment Climate: A unified guide was launched to streamline litigation procedures before Oman’s Investment and Trade Court, aiming to make commercial and investment dispute processes clearer for investors and legal professionals. Labour Market: Oman recorded 5,800+ labour complaints in H1 2026 as the Ministry of Labour pushed stronger workplace dispute resolution and collective dialogue. Shipping & Energy Risk (Hormuz): Strait of Hormuz traffic fell sharply as tensions with Iran persisted; UKMTO reported another tanker struck by an unknown projectile with two minor injuries, while Iran keeps pressure on Gulf routes. LNG Supply Diversification: LNG buyers at Gastech are widening sourcing and routes beyond the Gulf as war disrupts shipments, with Oman appearing on some buyers’ supply radar. OQ & Regional Energy Ties: OQ deepened Oman–Angola energy links during a Royal visit, signing renewable and energy memorandums. Solar Supply Chain: United Solar welcomed US moves to set minimum import prices and duties for polysilicon, reinforcing resilience for Oman’s solar and semiconductor supply chain.

Strait of Hormuz Tensions: Iran says its air defences destroyed an advanced reconnaissance drone over the waterway, as Tehran also insists the Strait will stay closed until US commitments are met. Red Sea Shipping Pressure: Houthi officials warn countries against joining Saudi Arabia in Yemen’s renewed civil war, while claiming US vessels won’t be targeted—amid ongoing fighting near Bab el-Mandeb. Oil Market Spillover: Pipeline damage and Hormuz uncertainty continue to ripple through crude, freight and gas markets, with Brent holding above $100 before slipping as Saudi reroutes supplies via Oman. Oman Logistics & Trade: Sharjah-Oman corridor cargo value jumped 66.26% in the first three months, while Oman’s role as a navigation and logistics hub remains in focus. EV Charging Regulation in Oman: Oman introduces regulated EV charging fees from Oct 1, aiming to bring clarity and support sustainable charging investment. Local Development: Dhofar is rolling out RO 19.2m in school construction and upgrades, alongside a youth-led push for stronger climate action across the region.

Oman Maritime & Trade: Shinas Port handled 2.34mn tonnes of cargo in H1 2026, with imports at 2.32mn tonnes and exports at 18,802 tonnes, plus a 156% jump in ship calls to 1,837—cementing its role as a logistics hub. Energy & Shipping Costs: A global supertanker shortage is pushing long-haul oil shipping costs higher, threatening to make some trades uneconomical as freight becomes a bigger slice of delivered crude. Oman’s Marine Fuels Deal: Bilfinger won FEED consultancy work for a marine fuels terminal at Shinas Port, supporting cleaner fuels and regional emission-reduction plans. Capital Markets: Asyad Shipping plans to raise its MSX free float by selling at least an extra 5% stake to the public before the second anniversary of its 2025 IPO. Tourism Push: Al Jabal Al Akhdar was named GCC Tourism Capital for 2027, with H1 2026 visitor numbers at 101,608 and hotel revenues around RO 7.8mn. Regional Risk Watch: US embassies, including in Oman, issued security alerts over potential rapid escalation tied to Houthi attacks and the wider Iran-US standoff.

Oman Industrial Push: Oman will begin a comprehensive survey of industrial establishments across all governorates on Tuesday, aiming to update sector data for Industrial Strategy 2040 planning. Local Manufacturing: Oman is investing about RO 15m to localise transformer component production, with 10 agreements covering seven new factories and expanded lines; commercial output is expected in 2027-2028. Maritime & Logistics: Bilfinger won FEED work for a marine fuels terminal at Shinas Port, while Ocean Master Marine Services expanded technical and crewing support for Oman’s maritime sector. Trade & Shipping Security: Iran and Oman say they’ve agreed on a safe shipping lane plan through the Strait of Hormuz as CENTCOM claims over 1bn barrels cleared the strait with US protection. Energy Market Watch: Oil prices slipped but stayed above $100 as supply risks persist amid Hormuz and Red Sea tensions. Health & Tourism: Oman reported a 49% drop in patients sent abroad for treatment, and Salalah Airport handled 686,808 passengers during the 2026 Khareef season. Business & Jobs: A junior accountant vacancy was listed for a marble manufacturing company in Oman.

Red Sea Energy Shock: Houthis’ rapid gains, including seizure of islands near Bab el-Mandeb, are tightening pressure on Red Sea shipping and raising the stakes for Gulf oil routes after Saudi’s East-West pipeline was hit and expected to stay offline for weeks. Hormuz Watch: Despite claims of “open and operating,” Strait of Hormuz traffic remains extremely thin, with US diversions and alternative routing helping cushion the impact while analysts warn volatility could return if disruptions worsen. Oman–Africa Deals: His Majesty Sultan Haitham’s visits to Botswana and Angola are driving new energy and investment cooperation, with Oman and Angola signing multiple agreements and MoUs across industry, agriculture, logistics, water and ICT. MSX Sentiment: Gulf investors increased buying on Muscat Stock Exchange, but geopolitical worries and postponed Gulf-Iran talks kept the MSX 30 slightly lower. Property & Prices: Oman’s residential property price index rose 22.7% in 2026 Q2, while the Producer Price Index climbed 32.7%, led by higher mining, refined petroleum and transformer-related equipment costs. Industrial Push: Oman is localising transformer component production with a RO 15m investment, and is set to showcase natural stone at Italy’s Marmomac to expand exports. Maritime Services: Ocean Master Marine Services says it is expanding technical, crewing and safety support for Oman’s shipping corridor. Hospitality Boost: Oman secured three MICHELIN Key hotel awards in 2026, strengthening its luxury tourism positioning.

Hormuz Security & Shipping: Iran’s IRGC Navy again claimed it attacked a tanker in the Strait of Hormuz, warning vessels against “illegal passage” as verified transits stay low and AIS “dark” sailing limits independent checks. Regional Conflict: In Yemen, the Houthis said Saudi Arabia carried out 26 strikes in 24 hours, while clashes in Taiz and a mass pro-Houthi march in Sanaa underline how the Red Sea fight is widening. Oman’s Trade Role: Oman is positioning itself as a practical logistics hub as Hormuz disruption reshapes routes—Sohar Port is courting Indian traders as a Gulf gateway, and Oman is also close to finalising a Hormuz shipping corridor agreement with Iran (though Iran says it doesn’t mean reopening). Energy Markets: Oil prices stayed volatile above $100 as pipeline damage and reduced chokepoint traffic tighten supply expectations, while Saudi export workarounds via Oman and ship-to-ship transfers come under strain. Finance & Payments: Thunes expanded cross-border payouts to Oman and other Middle East markets, reflecting continued demand for faster remittances and digital commerce rails.

Strait of Hormuz Flash: Iran’s IRGC says it struck the Togo-flagged tanker Trend near Khasab, Oman, as UKMTO also reported a separate projectile incident with a fire and no injuries—keeping maritime risk front and centre for Gulf trade. Oman Energy & Trade: Oman is pushing ahead with a liquefied hydrogen corridor from Duqm to support clean-energy exports and carbon neutrality, while Asian refiners are increasingly favouring Oman crude for delivery security amid Hormuz disruption. Shipping & Routes: With Hormuz traffic down sharply, Saudi Arabia is rerouting crude via Oman, and Sohar Port is seeing a surge in feeder services and food/consumer cargo from India to GCC markets. Regional Diplomacy: Saudi Arabia has proposed a two-week Yemen ceasefire and direct talks with the Houthis, delivered via Oman as mediator. Markets: Oil eased as supply fears cooled, but the broader energy-price shock and higher borrowing costs are still feeding stagflation worries.

Markets & Rates: Wall Street rebounded after the Fed’s rate hike as oil eased and Treasury yields fell, with tech leading gains and global shares rising; Oil & Shipping: Brent and WTI slipped as Saudi supply fears eased via ship-to-ship transfers near Oman’s Sohar and hopes of partial East-West pipeline restoration, even as Middle East tensions keep volatility high; Iran War Watch: Trump said he’s nearing a “big decision” on whether to resume large-scale attacks on Iran, ahead of talks with six Gulf leaders including Oman at the UN General Assembly; Oman in the Spotlight: US-Houthi talks mediated in Muscat saw pledges not to target American or Israeli ships, underscoring Oman’s role in regional maritime stability; Oman-Africa Diplomacy: His Majesty Sultan Haitham began a state visit to Angola to expand cooperation across mining, energy, tech, tourism, agriculture, food security, transport, logistics and ports; Food & Agri Tech: MLS UAE unveiled a robot skewer to automate mishkak preparation, reflecting Gulf demand for faster, consistent food production.

Oman–Botswana Diplomacy: Sultan Haitham’s state visit to Botswana is driving fresh cooperation, with leaders discussing renewable energy, mining, investment, logistics, and food security, alongside visa and regulatory MoUs. Oman–Angola Economic Push: The Sultan also begins a landmark visit to Angola to deepen ties in energy, mining, and maritime transport, including trade links via the Lobito Corridor to Omani ports. Green Fuels Investment: Brookfield will invest up to $600m in ACME Cleantech Ventures to build green ammonia and green methanol projects across India and the Middle East, with Oman highlighted in the pipeline. Red Sea Shipping Tensions (Oman as Hub): Reuters reports US officials held direct talks with Houthi representatives in Oman, focused on preventing attacks on American-linked shipping near Bab el-Mandeb. Oil Market Watch: Oil prices edged lower as Saudi offered extra crude cargoes through Oman’s Sohar, easing some supply-disruption fears even as Middle East risks linger. People & Business (HR): Saudi bottled-water firm Tania partners with Aon for a Human Capital Transformation Program, aiming to upgrade talent and leadership across operations.

Oman’s Mediation Role: US officials met Yemen’s Houthis at the US Embassy in Muscat over the weekend, with Oman helping arrange talks, as the group pledged to keep the 2025 ceasefire and said it would not attack American vessels—while also drawing attention to Red Sea shipping risks. Strait of Hormuz Diplomacy: Oman reiterated at the UN the need for safe, unhindered navigation through Hormuz under international law, as a planned Iran-Gulf foreign ministers meeting in Salalah was postponed, leaving trade and energy routes exposed. Energy Market Shock: Oil prices slipped after reports Saudi Arabia offered more crude loadings via Oman’s Sohar, easing some supply fears tied to attacks on Saudi infrastructure, but diesel concerns and elevated freight costs remain. Fed Moves Ripple Through Gulf: The US Federal Reserve raised rates by 25 bps to 3.75%–4%, rattling markets and pushing GCC central banks to follow, including Bahrain’s rate hike effective Sept. 17. Regional Security Fallout: Fresh Houthi drone and missile strikes hit Saudi targets including Yanbu and Khamis Mushait, while Saudi accused the rebels of attempting an attack on Mecca—raising pressure on regional defense and energy logistics. Oman in the Crosshairs: US officials and reports also highlighted wider damage from Iranian strikes across the Middle East, with Oman listed among affected locations.

Oman–Hormuz Shipping Talks: Iran’s FM Abbas Araghchi said Tehran wants a diplomatic solution and that an Oman plan to reopen Hormuz is in line with the US-Iran MoU, while China urged both Washington and Tehran to return to the Islamabad MoU and show restraint. US–Houthis Mediation in Muscat: US officials met Yemen’s Houthis at the US Embassy in Muscat, with Oman helping organize talks; the group told the US it has no plans to attack American vessels and is committed to the 2025 ceasefire. Energy Supply Shock Watch: Oil prices slipped as US crude inventories rose, but Middle East risks stayed; Saudi Aramco reportedly offered more crude to Asian refiners via ship-to-ship transfers off Oman’s Sohar after pipeline damage. Oman Ports as Trade Gateway: Oman pushed Sohar and other ports to Indian manufacturers in a New Delhi roadshow, highlighting CEPA-driven opportunities. Oman Agriculture Push: Oman plans to boost domestic mango production toward nearly 44,785 tonnes by investing across the mango value chain to cut imports. Energy Cooperation: Oman and Thailand signed an MoU to deepen energy investment, training, and joint project development. Disability Inclusion: Oman launched the fourth edition of “Living Independently” for persons with disabilities in Dhofar, with UNIDO and regional partners.

Strait of Hormuz & Shipping: Oman’s Maritime Security Center confirmed SAR for the Panama-flagged product tanker El Gaia after an attack off Oman; 23 crew were rescued and two remain missing, as India’s MEA condemned the incident and Iran’s IRGC gave a conflicting account. Energy Markets: Oil prices pushed higher as Saudi supply worries grew—Brent climbed after reports of a pause in loadings at Yanbu and damage to Saudi’s East-West pipeline, while the U.S. says the pipeline could restart within days. Regional Security: Iran’s Strait Authority updated a blacklist to 77 vessels and warned insurers and service providers against helping them, as U.S. and Iran trade accusations over tanker attacks and Hormuz navigation. Oman Climate Week: Oman opened Climate Week 2026 calling for stronger global action; GCC and Bahrain officials backed regional cooperation and highlighted an environmental innovation centre plan. Oman Business & Industry: Algeria and Oman moved to deepen pharmaceutical cooperation via a virtual meeting between health and pharmaceutical industry officials. Defense & Costs: A Pentagon watchdog report said Iranian strikes damaged hundreds of U.S. base structures across eight countries, while also flagging U.S. munitions shortfalls and defense supply bottlenecks.

Strait of Hormuz Disruption: Oman said the Panama-flagged tanker ELGAIA was being towed after a fire in its engine room following an earlier attack; 23 crew were evacuated and 2 remain missing as search and rescue continues off Musandam. Regional Diplomacy: Oman also postponed a Salalah meeting on Strait of Hormuz shipping, citing the need for consensus, while Iran and Gulf states remain at odds over how to manage safer passage. Energy Markets: Oil jumped above $107-$113 as Saudi pipeline outages and wider shipping risks feed supply fears, keeping pressure on fuel and gas prices across global markets. Oman Business & Industry: Madayn unveiled four Sur Industrial City investment opportunities—private hospital, specialised training centre, quarry for backfill materials, and an integrated residential complex—under Vision 2040. Telecom & Services: Oman’s TRA launched a pilot electronic Coverage Request Service to streamline governorate telecom coverage requests and tracking. SME Finance: National Finance signed a cooperation agreement with Lozari to support SME franchising through advisory and tailored financing. Labour Mobility: Oman is set to recruit 10,000 Bangladeshi workers (5,000 farmers, 5,000 fishermen) under a signed agreement. Climate & Transition: Oman Climate Week 2026 opened in Muscat, spotlighting net-zero by 2050, carbon markets, green hydrogen, and water security. Defense Watch: A US inspector general report said the Iran war cost $33.4bn and exposed ammunition and industrial bottlenecks—raising new concerns for regional security and trade stability.

Strait of Hormuz Diplomacy: Oman postponed the Salalah meeting with Iran and Gulf states “in the interests of consensus,” after Iran said Saudi Arabia requested the delay—leaving a temporary shipping framework in limbo as oil prices stay above $100 and shipping risk remains high. Houthi-Red Sea Pressure: Reuters reports fresh Houthi strikes on Saudi Arabia, while their push toward key Red Sea positions adds another layer of uncertainty for Gulf energy routes. US-Iran Shipping Clash: CENTCOM rejected Iran’s claim that the Panama-flagged tanker El Gaia hit a mine, saying it was struck by an Iranian missile and later hit again by drone while off Oman—an escalation that keeps commercial traffic on edge. Energy Infrastructure Shock: Saudi’s east-west pipeline shutdown after attacks threatens weeks of pain, with analysts warning up to 4% of global oil supply could be at risk. Oman Business & Trade: Oman-linked deals also moved—Bangladesh’s Piton Industries and Star Drones signed an MoU to export EV bikes to Oman, with plans for local assembly. Climate & Industry Events: Qatar joined Oman Climate Week in Muscat, while Oman continues to position itself as a regional hub for energy transition and logistics.

Strait of Hormuz & oil shock: Oman said it postponed Iran-Gulf talks in Salalah “in the interest of consensus,” while Iran insists the strait won’t reopen until US demands are met; meanwhile Saudi Arabia shut its East-West pipeline after attacks, removing a key bypass route and pushing Brent above $108 and Oman’s official crude price to $127.62 as diesel prices hit new highs. Shipping & logistics hit: With Hormuz traffic down to single digits at times and Bab al-Mandeb under pressure, crews and carriers are rerouting; Maersk added emergency surcharges for Gulf-bound containers, and Oman reported attacks involving tankers with Indian crew casualties. Oman diplomacy & energy planning: Oman’s Energy Minister said Hormuz disruptions are short term and urged diversification of LNG export routes, as Oman also called for alternative routes to reduce chokepoint risk. Oman business & climate: Oman Climate Week 2026 opened in Muscat with international participation, focusing on net-zero delivery and green finance, while Oman continues energy-sector outreach at GasTech 2026 in Bangkok. Oman-China trade ties: A Hainan economic and trade delegation visited Oman, signing cooperation MoUs and inspecting industrial parks to deepen investment links.