AGP Executive Report

Energy & Investment Cooperation: Oman and Libya have deepened energy and investment ties, with talks on oil, gas and renewables and an MoU signed between the Libyan Investment Authority and OQ Group to explore projects and knowledge transfer. Consumer Safety: Oman’s Consumer Protection officials in Al Dakhiliyah seized over 500 non-compliant tyres worth OMR13,000 after labels showed mismatched manufacturing dates, with legal action taken to stop unsafe products. Shipping & Environment Risk: In the Gulf, a cargo ship off Iraq’s coast was hit by an unknown projectile, triggering a large explosion; UKMTO says environmental damage is not yet known and investigations continue, while Iran’s IRGC claims responsibility tied to earlier attacks near Oman. Strait of Hormuz Pressure: With tensions around Hormuz and ceasefire talks ongoing, the UN shipping agency warns thousands of seafarers remain stranded because conditions are still too dangerous for crew transfers, including discussions involving Oman. Health & Public Services: Khoula Hospital in Muscat will get an integrated pulmonary unit after a RO 560,000 funding agreement, aiming to improve diagnosis and treatment with operations planned for early 2027. Research Collaboration: Oman’s Research and Innovation Authority launched the second edition of its Sultan Qaboos Scientific Chairs cooperation programme, approving funding for 8 projects from 46 proposals. Sustainable Community Tourism: In Al Khabourah, the Al Ghizain Walkway project is restoring heritage and promoting sustainable tourism and healthier lifestyles through community-led work, including falaj restoration.

Strait of Hormuz Tensions: Iran and Oman say talks on Strait of Hormuz control are “well underway,” after Trump warned Oman to “behave or we’ll have to blow them up,” while the US rejects any Iranian control or tolls and has threatened sanctions. Maritime Security Incident: A cargo vessel off Umm Qasr, Iraq was hit by an unidentified projectile/drone, triggering a large explosion and fire; UKMTO said it was unaware of environmental damage. Oman’s Climate Tech Push: An Omani oil producer installed an advanced flare control system to cut gas flaring and recover wasted gas for reuse, aiming to reduce emissions and improve safety. Renewables in Duqm: O-Green plans a 58 MW wind pilot project in Duqm, targeting about 190 GWh annually to support industrial decarbonisation and its broader clean energy pipeline. Health & Environment Link: WHO reviewed Barka Healthy City efforts as Oman seeks international healthy-city accreditation, focusing on public health and sustainable development. Public Safety in Heat: Oman’s midday work ban starts June 1, restricting outdoor work during peak heat to prevent heat stress and injuries. Sovereign Investment: Oman Investment Authority expanded its global portfolio in 2025, boosting Future Generations Fund value to about RO 8.57bn with RO 1.041bn profits. Biodiesel & Sustainable Fuels: HutanBio and Utopia World signed an MoU to scale sustainable fuels in Oman, with algae-based plans for aviation and maritime use.

Wind for Duqm’s industry: O-Green says it will build a 58 MW wind pilot in Duqm (six turbines) to generate about 190 GWh a year and support decarbonisation of its planned wind-turbine manufacturing. Tourism investment in Oman: MoHT signed usufruct deals for a RO 12m+ package— a 4-star resort in Al Hamra and a 5-star hotel in Mirbat—aimed at boosting jobs and hotel capacity. Heat rules for outdoor workers: Oman’s midday work ban starts June 1, stopping outdoor labour from 12:30pm to 3:30pm in summer to protect workers from near-50°C conditions. Water security across the GCC: A GCC statistical report points to lower groundwater extraction and a rising share of renewable water (projected 25.5% by 2024), supported by desalination and wastewater reuse. Shipping safety alert: Oman’s Maritime Security Centre warned of a floating object suspected to be a mine near the Strait of Hormuz, urging extreme caution and reporting. Agriculture and water diplomacy abroad: Oman will take part in Belagro 2026 in Belarus with a pavilion focused on agriculture, fisheries and water sustainability.

Strait of Hormuz Security: Oman’s Maritime Security Centre issued an urgent warning after a floating object suspected to be a naval mine was spotted west of the Inshore Traffic Zone, urging vessels and fishermen to keep well clear and report immediately, as shipping fears grow amid wider Gulf tensions. Heat Safety in Oman: The Ministry of Labour announced a midday work ban for outdoor workers at construction sites and other exposed areas from June 1, running 12:30pm–3:30pm through June–August, with fines and licence action for repeat violations. Clean Energy Push (Duqm): O-Green plans a 58 MW wind pilot in Duqm, generating about 190 GWh annually, alongside broader solar, wind and battery storage development. Battery Materials Manufacturing: Oman launched a $1bn lithium-ion battery anode materials project in Sohar Free Zone, with construction underway and capacity aimed at global supply chains. Tourism Investment: MoHT signed usufruct deals for a 4-star resort in Al Hamra and a 5-star hotel in Mirbat (over RO 12m total), while Al Ashkharah’s waterfront project reached 55% completion. Local Economy & Jobs: SEZAD and SQU will run a two-week Duqm summer internship for 18 students starting June 7, placing them with major Duqm tenants.

Maritime Safety in Focus: Oman’s Maritime Security Center warned vessels after a suspected naval mine was spotted in Omani territorial waters west of the inshore traffic zone in the Strait of Hormuz, urging heightened caution as tensions keep security risks high. Hormuz Control and Environment Costs: Iran is pushing ahead with legislation to formalize its management of Strait traffic, with claims that only Iran and Oman can decide on arrangements, while Iranian officials also frame fees as covering navigation, security and environmental costs—sparking fresh friction with US demands for “free passage.” Diplomatic Talks in Muscat: Iran’s FM Abbas Araghchi held talks with Oman’s Badr Albusaidi on regional security and Strait management, reaffirming commitment to freedom and security of navigation under international law. Oman’s Battery Supply Push: Oman secured major investment momentum for lithium-ion battery anode materials in Sohar Freezone, with construction under way and planned large-scale output—part of a wider clean-energy industrial drive. Investor-Friendly Deals: Oman’s commerce ministry unveiled new investment opportunities backed by guaranteed purchase/offtake agreements to reduce risk and improve bankability across industrial and healthcare sectors. Community Clean-Up: Nepal’s embassy in Muscat marked International Everest Day with a Peace Walk and beach cleaning at Qurum, blending environmental action with diaspora outreach.

Strait of Hormuz, Oman-Iran diplomacy: Oman’s Foreign Minister Badr bin Hamad al Busaidi spoke by phone with Iran’s Abbas Araghchi, with both sides stressing maritime navigation freedom under international law and discussing Hormuz’s future administration. Hormuz fees and shipping risk: Iran’s ambassador to India said navigation and security services in the Strait will no longer be free “under new conditions,” while Iran insists it is not charging tolls for passage—fueling fresh uncertainty for global trade. US pressure on Muscat: US Treasury Secretary Scott Bessent said Oman assured Washington it has no plans to toll Hormuz, calling it a “non-starter,” after warnings of sanctions for any facilitation. Maritime security advisories: The US warned commercial vessels near Hormuz that non-compliance with US directions could be treated as an imminent threat, and mine-laying activity would be targeted. Local environment angle: Oman’s role as a Hormuz stakeholder matters for regional environmental safety too, as heightened naval activity raises the stakes for spill and mine risks. Oman sustainability in focus: Oman continues pushing green building and sustainable city planning under Vision 2040, linking urban growth to lower-carbon, water-stressed resilience. Wildlife in Dhofar: A Dhofar youth wildlife photographer is documenting rare species, spotlighting biodiversity and the need to protect fragile habitats.

Strait of Hormuz Fees & Oman: Iran says it will charge for navigation and maritime security services in the Strait of Hormuz, arguing the “new conditions” are driven by regional conflict; Oman response: the US Treasury says Oman has assured Washington it has no plans to toll or charge ships, calling any such move a “non-starter” and warning of sanctions risk. Ceasefire Talks: US and Iran negotiators are reported to have a tentative 60-day ceasefire extension and talks on Iran’s nuclear programme, but Trump approval is still pending and Iran says texts are not finalized. US Sanctions: even amid the tentative diplomacy, the US imposed fresh sanctions on Iran’s military-linked oil trade, targeting eight vessels and more than 15 entities. Food Security Shock: the Hormuz slowdown is linked to fertilizer supply stress, with urea and sulfur volumes affected, pushing fertilizer prices higher and raising food security concerns. Climate & Heat: a major heatwave is intensifying across parts of Asia, straining power systems and energy demand.

Strait of Hormuz Pressure on Oman: US Treasury Secretary Scott Bessent says Oman has assured Washington it has “no plans” to impose transit tolls on shipping through the Strait of Hormuz, calling any tolling a “non-starter” and warning of sanctions. Maritime Security Tensions: The US and Iran traded strikes as talks over a 60-day ceasefire extension remained uncertain, with the US saying it intercepted drones and struck a ground control site near Bandar Abbas. New US Sanctions on Iran Oil Trade: Despite reported tentative ceasefire progress, the US imposed fresh sanctions on eight vessels and multiple entities tied to Iran’s military-linked oil “dark fleet” network, aiming to cut revenue used to fund armed forces. Heat and Energy Strain: Early heatwaves and the wider Iran war are described as worsening energy shortages, adding pressure to power systems across the region. Oman-Iran Navigation Talks: Reports say Oman and Iran discussed principles for safe, sustainable freedom of navigation through the strait under international law.

Strait of Hormuz Pressure on Oman: US President Trump warned Oman to “behave” or face attack, while the US and Iran traded new strikes near the Strait and markets reacted with renewed oil-price risk. Hormuz Fees Debate: Reports say Iran is charging up to $2m per vessel for “safe passage” and drafting a protocol with Oman for permits, with critics calling it a protection racket and arguing the Strait can’t be turned into a toll gate under maritime law. Maritime Safety Tensions: Iran’s navy fired warning shots at ships attempting to cross without coordination, forcing them to return, as “navigational” and “environmental services” fees replace the word “toll” in the dispute. Oman Heat Impacts: Eid Al Adha crowds were unusually thin as temperatures pushed near 47°C in parts of Oman, shifting people toward cooler indoor or shaded plans. Desertification Lens: A global report highlights how drylands are getting permanently drier, with the Sahara expanding—an environmental warning that resonates for Oman’s water and land stress.

Strait of Hormuz Tensions: US President Donald Trump warned Oman not to interfere in fragile US-Iran talks, saying the strait will stay open to “everybody” while Washington “watches over” it, adding “Oman will behave just like everybody else or we’ll have to blow ’em up.” The warning follows Iranian state claims of a draft deal that would restore commercial shipping and involve Iran and Oman jointly managing traffic—claims the White House calls “a complete fabrication.” Maritime Coordination: Iran also said it will manage shipping lanes in cooperation with Oman, aiming to regulate ship traffic and navigation flow, as security incidents keep raising alarm for one of the world’s key chokepoints. Oman Energy Transition: Oman LNG is nearing completion of a concept study for a commercial-scale methanation plant to produce synthetic methane (e-methane) as part of decarbonising the Qalhat LNG complex and supporting Oman’s Net-Zero 2050 goals. Urban Planning in Oman: Oman unveiled plans for “Future Sohar City” near Sultan Qaboos Port, with integrated residential, commercial, cultural and public spaces, and consultancy tenders already floated.

Strait of Hormuz, Oman link: Iran says it is ruling out enriched-uranium talks with the US for now, but Tehran and Muscat are jointly working on a new mechanism for vessel transit through the Strait of Hormuz as negotiations continue. Possible de-escalation framework: Reports point to a draft US-Iran MoU that could reopen commercial shipping within about a month, with the US lifting its naval blockade and Iran clearing mines, while shipping oversight is handled by Iran and Oman (with US military vessels reportedly excluded). Toll vs fees dispute: Iran insists it is not collecting “tolls,” but says it will charge for “navigational services” and environmental-protection measures—an issue the US says is unacceptable. Local maritime safety: Oman renewed maritime security cooperation with India to improve safer navigation and information-sharing amid heightened risks. Oil spill concern near Oman: A blast damaged an oil tanker off Muscat; authorities say fuel leakage was contained. Frankincense protection in Dhofar: A project aims to protect threatened frankincense trees at Wadi Dawkah, linking conservation with tourism. Climate stress on crops: India’s Alphonso mango crop was hit by El Niño-linked heat, showing how warming patterns can disrupt food supplies.

Strait of Hormuz Flashpoint: Fresh US strikes on southern Iran and Iran’s claim of a “gross violation” of the ceasefire have thrown Hormuz reopening talks into doubt, with Iran warning the US has “no safe haven” in the region and vowing retaliation. Shipping & Energy Pressure: Iran says it’s charging “navigational services” fees (not tolls), while traders stay cautious and oil prices swing; even gas prices are reacting, with Oregon hitting record Memorial Day highs despite a recent dip. Oman’s Role: Oman is deepening maritime security ties and renewing navigation cooperation with India, as Muscat and regional partners push for safer passage through the world’s most sensitive sea lane. Local Watch: Oman’s Haj Mission says it has mobilised resources for pilgrims, while Eid holiday travel is steering people toward Oman’s wadis and waterfalls. Business Fallout: A survey in Scotland shows mid-sized firms weighing higher costs and uncertainty by pausing investment and hiring. Kuwait Healing: Kuwait’s long-running soil rehabilitation at the Burgan field highlights how war scars can be reversed—slowly, but visibly.

Strait of Hormuz Flashpoint: Fresh US strikes in southern Iran—targeting mine-laying boats and missile sites—hit as Secretary of State Marco Rubio said talks could “take a few days,” while he warned the strait must stay open “one way or the other.” Ceasefire Tensions: Iran’s supreme leader vowed the US will have no “safe haven” in the Gulf after Tehran said the strikes violated the ceasefire, as Iran also demands release of $12b in frozen assets. Hormuz Fees Debate: Iran insists it won’t impose “tolls,” reframing charges as fees for navigation and environmental services—an argument that keeps negotiations tangled. Oman Angle: Oman is repeatedly referenced in the emerging “safe passage” and fee-mechanism talks, even as the maritime standoff threatens wider energy and trade flows. Local Watch: Oman banned delivery motorcycles from main roads to curb speeding and improve safety. Food Stress Abroad: Bangladesh farmers are shifting from paddy to fruit crops as water stress deepens, while India’s Alphonso mango belt reels from unusual weather.

US-Iran Negotiations Under Strain: US Secretary of State Marco Rubio says a deal with Iran could take “a few days,” after fresh “defensive” US strikes in southern Iran targeting boats trying to lay mines and missile sites—while Rubio insists the Strait of Hormuz must stay open “one way or the other.” Doha Mediation Push: Iran’s top negotiator and foreign minister are in Doha for talks with Qatar’s prime minister as both sides play down any imminent breakthrough, with discussions also tied to reopening Hormuz and Iran’s highly enriched uranium. Hormuz Fees Debate: Iran says it is not seeking “tolls,” but is proposing separate charges for navigation, security and environmental services—framing a new Iran-Oman mechanism for safe passage. Oman Link: Oman is repeatedly named in the safe-passage protocol talks, and a separate Oman FM call with Qatar also highlights coordination to support mediation and reduce escalation. Local Watch: Away from geopolitics, Oman Investment Authority reports a major gain from a partial exit from US AI infrastructure firm Crusoe, while India’s Alphonso mango crop is hit hard by weather.

Strait of Hormuz Talks, Oman Role: Iran doubled down that it is “not seeking” tolls for ships in the Strait of Hormuz, saying Tehran and Muscat are instead building a safe-passage protocol where “navigational services” and environmental protection may carry fees—while insisting the US-Iran war deal is not imminent. US-Iran Deal Mood, Still Fragile: Washington’s top diplomat Marco Rubio said diplomacy will get a chance, but warned the US will move to “another way” if no “good deal” emerges; Iran echoed progress on some items yet rejected claims of a near signing. Regional Mediation Push: Iran’s foreign minister and top negotiator met Qatar’s prime minister in Doha as talks continue via Pakistani mediation, with both sides downplaying a quick breakthrough. Oman Business Momentum: Muscat airport partners with Singapore’s Changi to upgrade retail and passenger experience; Dakhliyah tourism rises 22% as hospitality projects expand; North Batinah advances waterfront and tourism plans. Industrial Localisation: Voltamp launches a localisation drive for electrical/energy components, while OPAZ signs Dhahirah SEZ infrastructure packages.

Strait of Hormuz Talks: Oman and Iran met in Muscat to set out principles for freedom of navigation through the Strait of Hormuz under international law, with both sides also discussing how to keep shipping, trade and supply chains safe and sustainable; the meeting followed a verbal message from Iran’s foreign minister on regional developments and ongoing US-Iran talks mediated by Pakistan. Energy Transition: Aggreko and Inowatti signed an OPES 2026 deal to turn Oman’s flare and stranded gas into power using modular gas-to-power systems. Tourism & Governance: Oman’s decentralisation push is driving tourism growth as governorates use local authority to shape visitor experiences. Markets & Airports: Muscat Stock Exchange extends trading hours from June 2026, while Oman Airports partners with Singapore’s Changi to upgrade Muscat Airport’s passenger and retail experience. Food & Agriculture: Dhofar’s turmeric push hit about 98,447.5kg in 2026, alongside solar-backed sustainability in farming and livestock.