AGP Executive Report

Strait of Hormuz Diplomacy: Gulf foreign ministers are set to meet Iran’s top diplomat in Salalah, Oman on Sept 14 to back a temporary shipping arrangement, aiming to ease tensions after attacks and a sharp slowdown in traffic. Shipping Risk Escalation: Yemen’s Iran-aligned Houthis have advanced to seize Perim and key Red Sea coastal areas near Bab el-Mandeb, threatening a second global chokepoint and adding pressure to energy logistics. Oman Shipping/Trade Angle: Oman’s role is central as the talks seek regional buy-in, while markets watch for any sign the corridor can reopen without a wider US-Iran escalation. Energy Market Watch: Oil prices eased slightly on hopes of the Hormuz meeting, but remain highly volatile as attacks and chokepoint threats persist. Oman Business & Shipping Investment: Asyad Shipping ordered two more MR product tanker newbuildings from HD Hyundai, extending its charter-backed fleet expansion into 2029. Oman Corporate Presence: Sohar International opened a Hong Kong office, strengthening Asia-Middle East connectivity for trade and finance.

Middle East Energy Shock: Oil prices pushed higher again as US-Iran attacks and Iran’s expanded “prohibited zone” around the Strait of Hormuz stoked fresh supply fears, with Brent back above $100 and shipping disruptions keeping pressure on global fuel costs. Shipping Risk to Oman: Two vessels were hit near Oman’s Khasab, while UKMTO reported disabling fire incidents in the Gulf of Oman—raising the stakes for maritime safety and insurance. Oman Shipping Deals: Asyad Shipping ordered two more MR product tankers from Hyundai Heavy Industries in a $103.6m deal, and also signed long-term hydrogen offtake moves—signalling continued investment despite regional volatility. Oman Upstream & Mining: Oman ratified a new 50:50 Omani-Turkish EPSA for offshore Block 80 near Musandam, and signed mining agreements worth about $15.4m for two concession areas. Statistics & AI: Oman’s Central Statistical Bureau urged wider use of AI and modern data sources, including a plan to use AI in the Household Income and Expenditure Survey. Agriculture & Dates: Oman hosted the second meeting of the Executive Body of the International Dates Council, focusing on standards and financial sustainability for the sector. Business & Finance Links: Sohar International opened an Asia Pacific office in Hong Kong, strengthening Oman-Asia financial connectivity.

Strait of Hormuz Shock: Iran expanded a “prohibited zone” beyond the Strait of Hormuz and said it attacked US vessels and multiple tankers, while the US said it destroyed five Iranian oil tankers—pushing Brent back above $100 and reviving fears of sustained supply disruption. Shipping & Marine Risk: UKMTO reported several merchant ships in the Gulf of Oman and Gulf were hit by “disabling fire,” and the tanker war is now spreading into wider commercial routes, with at least one seafarer reported killed and others missing. Oman Energy & Industry: Oman’s Ministry of Energy and Minerals signed two mining concession deals worth about RO 6m for exploration across Al Dakhiliyah/Al Wusta and South Sharqiyah. Renewables & Power Projects: Oman issued an RFP for a 500MW Sinaw solar plant. Green Shipping in Oman: Asyad Shipping and Vale received the Sohar Max, Oman’s first wind-assisted Valemax-class carrier, using rotor sails to cut fuel use and emissions. Trade Signals: India’s commerce minister Piyush Goyal said exports under free trade agreements are growing faster than imports, with Oman trade rising after CEPA took effect on June 1, 2026. Regional Outlook: Oxford Economics projects a GCC rebound to 6.8% GDP growth in 2027, despite 2026 contraction tied to war and Hormuz disruption. Local Law: Oman introduced a tougher Anti-Narcotics Law with severe penalties, including the death penalty in aggravated trafficking cases.

Shipping & Energy Shock: The US and Iran escalated their tanker war again, with CENTCOM saying it destroyed five Iranian crude-oil tankers on Sep 8 after IRGC ballistic-missile attacks on a US Navy warship, while Iran claimed it hit 10 ships near the Strait of Hormuz and fired missiles at a US base in Jordan—pushing Brent above $100 and lifting Oman’s official crude price to $121.68/bbl. Maritime Safety & Costs: Reports of disabled merchant vessels, crew evacuations, and rising insurance and shipping risk are piling pressure on Gulf logistics as Hormuz traffic stays far below normal. Diplomacy Under Strain: Iran has taken the dispute to the UN, accusing the US of illegal aggression and warning of wider retaliation if more tankers are hit. Oman Business Angle: Amid the wider disruption, Oman’s energy-linked firms and logistics ecosystem remain in focus, including Omani industry updates and regional cooperation efforts. Regional Security Outlook: Analysts warn the conflict is spreading across multiple fronts, making a quick return to normal shipping unlikely.

Agribusiness & Food Security: Oman’s Ministry of Agriculture, Fisheries and Water Resources is rolling out programmes to boost date production and value, including applied research on post-harvest drying and trials using a polycarbonate-covered chamber to cut losses and protect fruit quality. Trade & Investment: The Oman-India Business Forum in Muscat focused on how businesses can use the CEPA to expand exports, access new markets and build partnerships, leveraging Oman’s logistics and special economic zones. Energy Markets: Oman’s official oil price for next November rose $5.15 to $121.68 a barrel as Middle East conflict escalated, while Brent pushed back above $100 amid renewed US-Iran tanker strikes and supply fears. Shipping Risk: UKMTO warned that several merchant vessels in the northern Arabian Gulf and Gulf of Oman were hit by disabling fire during military activity, and a separate report said a tanker near the UAE was listing after a possible projectile attack. Oman-Specific Mobility & Logistics: Asyad Group signed deals in Salalah covering autonomous freight transport, green hydrogen mobility solutions and onshore power supply for ports, aligning with Oman’s net-zero push. Smart Cities: Hyundai Motor Group signed MoUs with Oman’s transport and communications ministry for smart city development and eco-friendly mobility, including a hydrogen city bus pilot and ultra-fast EV charging in Muscat.

Gulf Energy Shock: The US Central Command says it destroyed five Iranian crude oil carriers after Iran’s IRGC tried to hit a US warship with ballistic missiles, with strikes reported near the Gulf of Oman and Kharg Island—prompting Iranian warnings to tanker crews in Bahrain and Kuwait. Regional Escalation: Iran-backed Houthis simultaneously attacked four southern Saudi cities, wounding 73 and hitting oil installations, as the wider Middle East conflict spreads. Oil Prices Jump: Brent pushed toward $98-$100 on renewed Hormuz and Saudi energy risks, with analysts flagging potential supply tightness. Aviation Pressure on Iran: The US Treasury sanctioned 27 remaining Iranian airlines and related third-country firms, tightening the “Operation Economic Outcast” squeeze on Iran’s aviation networks. Oman Angle—Hormuz Talks: Iran says it has “significant progress” with Oman on a temporary Strait of Hormuz route, while UN trade officials warn disruptions hit small businesses hardest. Oman Business & Infrastructure: Oman announced new EV charging fees from Oct 1, and Kistos secured legal ownership of Oman blocks 3&4 as the upstream push continues.

Oman–Rwanda Diplomacy: Oman and Rwanda announced plans to open resident embassies, set up a joint committee and business council, and expand cooperation across investment, transport, energy, mining, tourism, logistics and communications as President Paul Kagame wraps up a two-day visit to Salalah. Trade & Logistics: Rwanda and Oman also signed two agreements and six MoUs, including visa exemptions and avoidance of double taxation, plus cooperation on agriculture, land and inland dry ports, supply chains and investment promotion. Industrial Growth in Oman: Al Suwaiq Industrial City in North Al Batinah has started new factory and investment projects, including polyethylene production, industrial oil refining, polymer-modified bitumen and ceramic tiles, with leased space and cumulative investment rising. Energy & Shipping Shock: Oil prices hovered near $100 as Middle East tensions intensified; Yemen’s Iran-backed Houthis attacked Saudi energy facilities, while Iran warned of a new maritime restricted zone and a shipping corridor tied to Strait of Hormuz management. Oman–China Zones: Oman is exploring deeper investment cooperation with China across special economic zones, free zones and industrial cities, with talks focused on port links and specialised industrial clusters. Markets Watch: Global equities were mixed as oil strength fed inflation worries and rate-hike bets, with the yen also moving sharply.

Strait of Hormuz Talks: Iran says it is in the final stage of a deal with Oman to set up a temporary, safe tanker route, with details likely to be registered with the International Maritime Organization within days, even as tensions keep flaring. Maritime Risk Escalation: Iran also plans a new “restricted zone” in the Gulf and is preparing maps for a new Hormuz corridor, warning ships could be added to a sanctions list—while Iran’s parliament speaker and defence officials trade threats with the US. Oman’s On-Scene Response: Oman’s navy rescued 16 crew members from the Saudi-flagged oil tanker Sidr after an Iran attack, with two sailors reported killed. Energy Markets: Brent stayed near six-week highs around $97 as shipping disruption fears returned; analysts at Goldman and Rystad flagged potential upside if the US-Iran standoff continues. Business & Investment Angle: Oman is positioning itself as a structured-finance hub for infrastructure, renewables, logistics and green hydrogen as Vision 2040 projects move into execution. EV Policy: Oman set EV charging fees from October 1, with tariffs by charger capacity ranging from 50 to 120 baisa per kWh. Bilateral Moves: Oman and Rwanda held talks in Muscat focused on mining, renewables, food security, logistics and healthcare.

Oman-Iran Shipping Talks: Iran’s foreign ministry says negotiations with Oman on a temporary, safe Strait of Hormuz route are in the final stage, with a memorandum likely to be registered with the International Maritime Organization soon. Hormuz Disruption: Shipping traffic through the Strait has dropped to the lowest since May, with commodity transits averaging about 10 ships a day, as US-Iran tanker strikes keep freight depressed. New Iranian Restrictions: Iran says it will announce a restricted/prohibited maritime zone beyond the US blockade line into the Gulf and add non-coordinating vessels to a sanctions list, while also approving new corridor maps in Iranian and Omani waters. Energy Markets: Oil prices hover near six-week highs as the escalation raises supply-shock fears; Opec+ keeps October output quotas unchanged amid the turmoil. Oman Business & Industry: Construction is underway at Al Suwaiq Industrial City, with projects spanning petrochemicals, refining, bitumen polymers and ceramic tiles; Oman also launched a 2026/27 livestock vaccination push in North Al Batinah targeting more than half a million animals. Defense & Trade Links: The US approved a $188m F-16 sustainment sale for Oman, and Oman and China discussed investment partnerships in economic and free zones.

Strait of Hormuz Flashpoints: Iran says it struck an unmanned US vessel trying to enter the waterway, calling the US account “a total lie,” while Tehran also warns of a new restricted/prohibited maritime zone and “faster, heavier and more painful” retaliation after US strikes on Iranian tankers. Energy Markets: OPEC+ kept crude output unchanged for October, with Oman among the seven core producers, as Brent hovers near $96 and Hormuz disruption keeps supply uncertainty high. Oman–Yemen Power Link: Oman and Yemen signed agreements to connect electricity grids, aiming to ease chronic shortages in Yemen’s Mahra via Dhofar. Regional Tech & Water: MENA startup funding jumped to $375m in August despite fewer deals; KISR and the IAEA launched a groundwater protection push using nuclear technology with Oman among participants. Local Business & Agriculture: A new modern olive press opened in Al Jabal Al Akhdhar to boost processing capacity and local olive oil quality. Oman in Culture: Oman wrapped up its first pavilion at the Moscow International Book Fair, promoting culture and heritage abroad.

US-Iran Maritime Escalation: CENTCOM says it permanently disabled two IRGC-linked crude tankers and sank a third (M/T Kylo) after Iran fired ballistic missiles at US Navy warships near the Strait of Hormuz; Iran’s IRGC counters with claims of hitting US vessels and a drone, warning of wider retaliation. Oman in the Middle: A report says Oman’s secret Iran-linked shipping corridor deal over Hormuz transit—aimed at keeping trade moving—has inflamed the standoff, with toll and mine-clearing arrangements becoming a flashpoint. Energy Watch: OPEC+ is set to keep October output policy unchanged as Hormuz disruption clouds 2027 quota talks, while analysts warn mine threats and insurance hurdles keep the strait effectively risky. Hydrogen & Logistics: OQ Alternative Energy and Asyad sign a term sheet to use green hydrogen for mobility in Oman, linking Duqm production to transport pilots. Business & Trade: Milano by Danube holds a traders meet in Muscat, citing supply-chain shocks and freight volatility; Al Mazunah Free Zone reports H1 2026 investment lift above OMR141m via four new projects. Tourism & Skills: Oman says Indian arrivals rose 11% in 2025; Oman launches a CFO Mentoring Program for 60+ finance professionals. Standards & Agriculture: Oman’s standards index rises to 33.8% growth; South Al Batinah vaccinates 332,674 livestock in the 2025-26 campaign.

Middle East Shipping Shock: The US says it destroyed or disabled three Iranian crude oil tankers after Iran’s IRGC fired ballistic missiles at two US Navy warships near the Strait of Hormuz, with CENTCOM warning it will impose “even higher economic cost” if attacks continue. Iran’s Response: Iran’s Foreign Ministry condemned the strikes as a “war crime” and a violation of the UN Charter, saying Washington is waging naval blockade and economic warfare against commercial navigation. Oman Business Angle: With Hormuz tensions again spilling into shipping risk, Oman’s trade and logistics operators are watching costs and route disruptions closely, while regional diplomacy efforts also call for de-escalation to protect maritime flows. Oman Development Watch: Oman’s Al Mazunah Free Zone says it localised four projects in H1 2026, lifting cumulative investment to RO141m, and Oman’s Standards and Specifications Index rose 33.8% by Q2 as the country expands technical standards for industry and services.

Green Hydrogen & Logistics: OQ Alternative Energy and Asyad Group signed an MoU to study using green hydrogen from Duqm in Oman’s transport and logistics, pushing practical adoption of hydrogen value chains. Hydrogen Policy Push: Oman joined the International Partnership for Hydrogen and Fuel Cells in the Economy (IPHE), aiming to align standards and accelerate green hydrogen development under Vision 2040. Industrial Zones & Investment: Al Mazunah Free Zone localised four projects worth over OMR620,000 in H1 2026, lifting cumulative investment to more than OMR141m and preparing for an Oct 20–22 economic exhibition with Yemen-focused trade ties. Cement Turnaround: Raysut Cement Group reported H1 net profit after tax of OMR2.71m, reversing last year’s loss, supported by higher volumes and better subsidiary performance. Markets & Finance: Muscat Stock Exchange market cap rose to OMR38.9bn (+OMR600m weekly), with MSX 30 up 1.27% as trading value jumped and fundamentals stayed resilient. Investment Showcase Abroad: Oman will bring “Live Oman” to London (Sept 21) to market urban projects, free zones and real estate opportunities to UK investors. Shipping Security & Hormuz: US escorts and mine-clearance efforts keep more oil and gas moving near Hormuz, though traffic remains below averages amid ongoing US-Iran tensions. Health Milestone: Oman completed its fourth heart transplant, saving four lives from one brain-dead donor. Defense Cooperation: US approved possible F-16 sustainment services for Oman (about $188m), reinforcing interoperability and future training.

Oman–UAE Rail Deal: His Majesty Sultan Haitham ratified the $2.5bn Hafeet Rail agreement linking Sohar to the UAE network via Al Buraimi and Al Ain, aiming to boost freight and passenger connectivity for Oman’s industrial and port hub. Green Mobility Push: Oman will launch a hydrogen-powered city bus in Muscat under a partnership with Hyundai Motor Group, with Mwasalat set to run the ELEC CITY Fuel Cell bus on a pilot route from Q3 2026. Hydrogen & EV Infrastructure: Hyundai also signed an MoU with Oman’s transport and tech ministry to support smart-city planning, hydrogen mobility and EV charging aligned with Oman Vision 2040. Energy Prices & Hormuz Risk: Oil prices are set for weekly gains as US-Iran tensions and Strait of Hormuz security concerns keep supply disruption fears elevated, with Brent hovering near $95. EU-GCC Summit: EU and GCC leaders will meet in Saudi Arabia on Oct. 24 for the second EU-GCC summit, with Oman among the participating states. Trade Momentum: New FTAs are opening export gains across key sectors, while Oman’s CEPA push highlights the country’s role as a gateway for regional trade. Hospitality & Business Events: HORECA Oman returns for its fifth edition, bringing food, hotel and kitchen suppliers and hospitality tech under one roof for Oman’s sector growth.

Oman’s Mediation Role: Oman, Qatar and Pakistan are pushing US-Iran de-escalation talks, focusing on keeping communication open and maritime security in the Strait of Hormuz, where shipping risk remains a major business concern. Maritime Safety & Labour: Two Filipino seafarers died after unidentified projectiles hit the Saudi-flagged tanker SIDR near the Strait; the Philippines kept the route on red alert and reminded shipowners to apply safety protocols and let crews refuse high-risk voyages. Energy Prices Watch: Gasoline and diesel prices are surging ahead of Labor Day in the US, with diesel nearing record highs as Hormuz tensions keep crude risk elevated. Oman-UK Diplomatic Boost: King Charles and Queen Camilla will host Sultan Haitham for a state visit in October, underlining Oman’s role as a regional intermediary during the Hormuz crisis. Infrastructure in Oman: Structural steelwork is substantially complete for Muscat’s Sayyid Tarik bin Taimur Cultural Complex, a major cultural and services hub. Green Mobility: Hyundai Motor Group signed an MoU with Oman to introduce hydrogen-powered city buses and expand EV charging infrastructure.

Oman renewables push: Oman’s PWP invited bids for legal consultancy on three Solar 2030 solar IPPs totaling 3GW, targeting commercial operations in Q2 2030. Port & logistics growth: Duqm Port received one of the world’s largest RoRo vessels from China (BYD), underscoring Oman’s vehicle-handling capacity and its role as a GCC gateway. Energy security & shipping risk: With Strait of Hormuz tensions still roiling trade, reports point to sharply reduced traffic and renewed tanker incidents near the Omani corridor, keeping oil prices sensitive. GCC trade ties: Oman and Qatar reaffirmed plans to boost trade, investment and private-sector cooperation during ministerial discussions. Transport cooperation: Oman’s Public Works minister discussed Kuwaiti-Omani logistics coordination linked to Duqm Port. Food security at GCC level: Oman participated in the GCC Food Security Committee meeting in Bahrain, backing plans for strategic storage zones and updated agricultural and veterinary rules. AI entrepreneurship: Omantel Innovation Labs and Riyada backed AI entrepreneurship at the Salalah AI Hackathon 2026.