AGP Executive Report

Strait of Hormuz Diplomacy: Oman has put forward a regional mechanism to manage the Strait of Hormuz with voluntary fees, backed by Gulf states, aiming to reduce disruption without giving Iran sole control; Iranian FM Abbas Araghchi also held calls with Oman and Saudi counterparts on Strait security as the US-Iran pause continues and oil markets react to shifting signals. Foreign Affairs: Oman’s FM Sayyid Badr received Ukraine’s outgoing ambassador and accepted credentials copy for Brazil’s ambassador-designate, underscoring Muscat’s active diplomatic calendar. Regional Security Spillover: Explosions and drone strikes hit Erbil near the US consulate, with reports of multiple drone targets and heightened air activity, showing tensions remain volatile beyond the Gulf. Trade & Connectivity: Air Tanzania officially inaugurated direct Dar–Muscat flights, with three weekly services expected to boost travel and tourism links. Domestic Governance & Quality: OAQA cancelled Mazoon College’s institutional accreditation after an exceptional review found it no longer meets requirements. Heritage & Tourism: The Ministry of Heritage and Tourism issued the Al Hajar Geopark booklet in Arabic and English to support sustainable ecotourism and UNESCO-style registration efforts. Economy & Jobs: Oman’s Eleventh Five-Year Plan targets about 300,000 jobs for nationals over 2026–2030, with a heavy push toward private-sector hiring.

Strait of Hormuz Diplomacy: Oman is pushing for a practical agreement to reopen and manage shipping through the Strait of Hormuz as the US and Iran pause strikes and trade warnings. Oman-Iran Talks: Iran says its Hormuz discussions are a bilateral matter with Oman (not the US), while negotiators reportedly work on traffic management and transit arrangements. US-Iran Ceasefire Signals: Trump says the US is having “good” and “very friendly” talks with Iran and warns strikes could resume if talks fail; Iran denies direct negotiations but says mediators can pass messages. Markets React: Oil prices slid sharply on de-escalation hopes, with Brent falling toward the high-$80s and global stocks gaining, even as shipping disruption risk remains. Regional Security Pressure: Kuwait condemned drone attacks on Saudi petroleum facilities, underscoring how Gulf sovereignty and critical infrastructure stay central to the crisis. Oman Domestic Governance: Oman Housing Bank launched a digital waiting list for housing loans, while transport upgrades continue on a key dualisation road project in South Al Sharqiyah.

Oman Digital Governance: Oman Housing Bank launched its first Digital Waiting List platform for housing finance, letting citizens register and upload documents online and receive updates until their appointment—processing 1,252 applications worth over OMR 63m. Telecom Regulation: TRA opened a public consultation on draft telecom licensing regulations, aiming to set a clear permit framework for telecom and IT services, network work, last-mile services, security and related activities. MSX Performance: Net profits of MSX-listed public joint-stock companies rose 12% to OMR 866.98m in Q2 2026, with industrial and financial sectors leading growth. Regional Diplomacy (Hormuz): As the US and Iran paused strikes for a third night, mediators reported progress toward talks; Iran denied direct US negotiations but said it is coordinating with Oman on “mechanisms” to manage safe Strait of Hormuz shipping. Regional Security: Iran also claimed it remains in control of Hormuz and rejected peace talks with the US, while the Strait stayed closed amid ongoing maritime incidents. International Linkages: Oman’s role in Hormuz discussions continued to surface alongside broader regional efforts to de-escalate.

Oman-Iran Mediation & Hormuz Talks: The US and Iran paused strikes for a second straight day as Iranian and Omani officials pushed technical talks to restore safe navigation through the Strait of Hormuz, with US envoy Mike Waltz saying Washington is “giving talks some space” while keeping options open. Maritime Risk Update: Despite reported progress, Iranian media claimed a tanker hit a mine and exploded in the strait, while Iran also said it halted several commercial ships—raising fresh questions about how any corridor deal will manage mine hazards. US Policy & Accountability: Separate reporting says the Pentagon removed four US troops from the official Iran war death toll and moved them into a new “Overseas Operations” category, fueling scrutiny over how casualties are counted. Regional Spillover: Even with the lull, the wider conflict kept moving—Houthis attacked Saudi oil installations and the Gulf remained tense, with fears the war could spread further if strikes resume. Diplomatic Outreach: Oman’s FM held talks by phone with UAE counterparts, and Oman’s foreign minister met the Philippines’ top diplomat in Manila to coordinate on regional stability and freedom of navigation. Energy & Markets: Oil prices slid as the strike pause eased immediate pressure, but analysts warned chokepoint disruptions could still tighten supplies. GCC Competitiveness: GCC states, including Oman, improved rankings in the IMD World Competitiveness Yearbook 2026, highlighting government efficiency, business performance, and infrastructure gains.

Oman–Philippines Diplomacy: Foreign Minister Sayyid Badr Albusaidi met DFA Secretary Maria Theresa Lazaro on the sidelines of the 3rd Oman–Philippines Investment Forum in Manila, agreeing to keep regular dialogue and high-level visits and to push forward two key deals: an Investment Promotion and Protection Agreement and an Avoidance of Double Taxation Agreement. Strait of Hormuz Talks: Iran says it made “productive” progress with Oman on operational mechanisms for safe ship passage through the Strait of Hormuz, with technical and political consultations continuing and no change reported in traffic status. Maritime Security Enforcement: CENTCOM says the US naval blockade on Iran remains in full effect, redirecting 12 commercial vessels, disabling two, and boarding two for verification, including actions in the Arabian Sea and Gulf of Oman. Oman Economic Governance: Oman’s Financial Services Authority adopted executive regulations for the Securities Law to prepare capital-market institutions for rapid financial-technology developments. Labour Policy in Salalah: Oman launched the National Employment Policy framework through a Work Forum 2026, with officials calling it a milestone for national talent development and labour-market readiness. SME Support: Riyada reported 19,267 new Entrepreneurship Cards issued in H1 2026, bringing total card-holding enterprises to 32,103. Youth Discipline Programme: Oman began the third Military Discipline Programme at the Military Technological College, running until 19 August with over 1,000 students.

Oman’s Role in Hormuz Diplomacy: Reports say Trump ordered the U.S. military to pause planned strikes on Iran after an Omani delegation arrived in Tehran, with talks focused on reopening the Strait of Hormuz and setting navigation rules. Gulf Shipping Under Strain: Even with a brief lull—Iran reporting a “peaceful night”—the U.S. blockade enforcement continued, including disabling a Mozambique-flagged tanker in the Gulf of Oman and boarding other vessels. Red Sea Escalation: Iran-aligned Houthis launched missiles and drones at Saudi Arabia, targeting Aramco facilities in Yanbu and Jizan, as Saudi airstrikes hit Hodeida and Kamaran Island—raising fears for Bab el-Mandeb shipping. Oman Security Alerts: Oman downed two drones over Dhofar and reported a third crash near Salalah port, according to state media. Local Governance & Economy: Oman reported a 39% recycling rate and 96 recycling facilities, while also moving to strengthen real estate rules and local content in oil and gas. Sports & Society: Dhofar officials are reviewing options for reviving traditional Khareef family camps; Oman’s youth handball team finished 10th at the Asian Championship.

Gulf Security: UKMTO reported an incident involving a tanker and unspecified military forces in the Gulf of Oman, urging heightened vigilance as attacks and blockade risks keep disrupting navigation near the Strait of Hormuz. US-Iran Escalation: Iran said it had a “peaceful night” with no new US strikes after 13 nights of attacks, while Washington weighs whether to intensify or keep “piece by piece” strikes amid ongoing regional alerts. Regional Military Signals: A Wall Street Journal report says Bahrain and Kuwait carried out covert airstrikes inside Iran earlier this month, with UAE intelligence and air cover support—an apparent step up from prior defensive postures. Maritime Coalition Talks: The US and UK plan a high-level London meeting to build an international coalition to protect commercial shipping in the Strait of Hormuz. Oman Domestic & Economy: Oman joined a global AI governance body as a founding member; it also highlighted UNESCO-backed heritage capacity-building for African countries, launched “Purple Saturday” for disability inclusion, and moved to strengthen real estate rules to boost investor confidence. Markets: MSX weekly local purchases topped OMR154mn, while Oman’s FDI stock rose 8.7% to OMR32.2bn in Q1 2026.

Oman-Iran Maritime Talks: An Omani delegation arrived in Tehran to discuss mechanisms for managing shipping traffic in the Strait of Hormuz, with both sides stressing navigation safety and de-escalation as US-Iran strikes continue. Red Sea Escalation: Saudi-led coalition strikes hit Yemen’s Hodeidah after Houthi attacks on Saudi tankers, while the Houthis warn of a naval blockade—raising fears of wider disruption beyond Hormuz. US-Iran War Intensifies: The US fired on a merchant vessel trying to breach its blockade of Iranian ports as the conflict entered a 13th straight night of strikes; Trump also said Washington will investigate EU trade practices over “unethical” fines on tech firms. International Pressure on Shipping: Markets and insurers are pricing in prolonged instability, and the EU has delayed release of some satellite images covering Hormuz-linked shipping lanes. Oman’s Industrial Push: UNIDO highlighted Oman’s move into photovoltaic manufacturing as part of its clean-energy industrial strategy, pointing to rapid sector expansion.

EU Sanctions Enforcement: The EU authorized Operation Atalanta to conduct flag-verification boardings of vessels suspected of Russia’s “shadow fleet” in the western Indian Ocean, extending action beyond the Mediterranean after Irini boarded a sanctioned tanker. Oman Standards & Trade: Oman adopted new national standards for frankincense essential oil and distilled frankincense water to boost quality control and global competitiveness. Oman Diplomacy on Shipping Safety: Sayyid Badr met counterparts in Manila (Netherlands, UK, India) and Oman reaffirmed support for maritime security and freedom of navigation, urging de-escalation to keep the Strait of Hormuz open. Hormuz/Red Sea Pressure: With US-Iran tensions and Houthi attacks driving oil above $100, the IMO chief rejected proposals to charge Hormuz fees as not aligned with international law, while shipping insurance costs jumped and hundreds of vessels remain stuck. US Tariffs Spill Over: The US imposed new 10–12.5% forced-labour tariffs on 60 economies, including Oman’s region, as global trade partners brace for higher costs. Oman Business Appointments: Oman Duty Free named Sayyid Nasr Al Busaidi as CEO to expand retail services at home and abroad. Regional Energy Shift: Gulf states accelerated pipeline and port plans to bypass Hormuz, including DP World’s Fujairah terminals, as chokepoints face renewed risk.

Red Sea & Hormuz Escalation: Oman said it is coordinating with Saudi Arabia, Yemeni parties and the UN to resume a political track for stability, while warning against escalation that threatens freedom of navigation. Regional Security: GCC states and Jordan condemned Iran-linked attacks, reaffirming self-defence under UN Charter Article 51. Maritime Pressure & Oil Shock: Houthis claimed strikes on Saudi tankers in the Red Sea, pushing Brent back above $100 and raising fears of supply disruption across both Bab el-Mandeb and the Strait of Hormuz. US-Iran Brinkmanship: The US carried out a 12th straight night of strikes on Iran as Trump warned of “major military punishment,” while Iran vowed to keep striking. Oman’s Financial Resilience: Fitch said Omani banks should stay resilient amid the Iran war, with risks “fairly contained” in 2026. Oman-Philippines Diplomacy: Oman and the Philippines will hold a high-level strategic forum in Manila focused on trade, investment, tourism, logistics and connectivity. Local Economy & Culture: Oman opened a honey and turmeric exhibition in Salalah, and announced a second Omani Chanting Festival in A’Dakhiliyah for October.

Red Sea De-Escalation: Oman urged all sides to avoid escalation in the Red Sea, saying it is coordinating with Saudi Arabia, Yemeni parties and the UN envoy to restart the political track and roadmap for Yemen. Diplomacy Track: Foreign Minister Sayyid Badr bin Hamad Al Busaidi met Pakistan’s Ishaq Dar on the ASEAN sidelines, with both calling to uphold the US-Iran ceasefire and respect international law. Government Digital Push: Oman hit 75% on the UN ESCWA GEMS maturity index for 2025, up from 72% in 2024, covering 27 institutions and 93 services. Regional Security Spillover: Houthis claimed attacks on two Saudi tankers in the Red Sea as US-Iran strikes continued, raising fears of wider shipping disruption. Energy Pressure: Oil prices rose for a fifth day amid Strait of Hormuz and Bab el-Mandeb risks, with Brent nearing six-week highs. Oman in the Gulf Energy Shift: Gulf states accelerated plans for pipelines and alternative routes to reduce reliance on Hormuz, with Oman closely monitoring developments. International Cooperation: Oman’s aviation and energy ties also featured in diplomacy, including an Oman-Pakistan meeting and a Chinese EPC deal for a 500MW solar project in Al Kamil.

Strait of Hormuz Escalation: Oil jumped again as US-Iran talks cooled and shipping risks near Oman intensified; Trump warned the US will bomb “one bridge or power plant” for every Iranian ship attack, while Iran said it has no negotiations beyond message exchanges. Aviation & Travel Safety: EU aviation safety regulators told airlines to avoid Jordan airspace through August 31 after Iran-linked strikes hit US facilities, adding to regional no-fly disruptions. Maritime Disruption & Costs: Reports said a Greek-owned tanker was seized after attacks in Hormuz, and shipping firms are offering large bonuses as traffic thins and insurance costs rise. Oman Domestic & Public Services: Al Sharqiyah North highlighted health expansion reaching 320,000 people, while Oman’s Salalah Eye observation wheel is set to open August 15 as a new Khareef tourism draw. Security Operations: Royal Oman Police dismantled an international fraud network in North Al Batinah. Sports & Culture: Oman won the West Asian Men’s Volleyball Championship in Muscat; Shabab Radio marked its 23rd anniversary.

Strait of Hormuz Security: Korea says it’s reviewing practical ways to contribute to freedom of navigation in Hormuz, denying any specific U.S. request for a particular warship while talks continue. Oman-EU Diplomacy: Oman and the EU sign an agreement to establish an EU mission in Muscat, expanding the diplomatic footprint. Regional War Escalation: The U.S. completes its 11th straight night of strikes on Iran as Trump warns he is “not finished,” with Iran and Gulf states reporting new attacks and air-defence activity; shipping and oil markets stay jittery. Oman Justice & Elections: Public Prosecution convicts three in Muscat over vote-buying and election influence tied to the 10th Shura Council polls, plus a cybercrime insult case. Drugs & Public Order: ROP arrests three in Seeb for trafficking-grade crystal meth, and also reports other arrests over public morality and labour law violations. Sports (Oman): Oman’s youth handball team exits group stage after a loss to Chinese Taipei, shifting to placement matches. Trade & Investment: Al Mazunah Free Zone holds talks with Yemeni import-export firms to boost cross-border trade, including a proposed open market initiative.

Oman Diplomacy Calls: Qatar’s PM Sheikh Mohammed bin Abdulrahman held phone talks with Saudi, Bahrain and Oman’s FM Badr bin Hamad Al Busaidi, stressing dialogue and implementing the US-Iran MoU to protect Hormuz traffic and Oman’s sovereignty. Hormuz Shockwaves: US-Iran strikes hit a 10th straight day as Iran attacked a tanker near Oman, while Houthis warned of Red Sea disruption; oil prices stayed elevated and shipping risk kept rising. Ceasefire Push: Mediators including Qatar, Egypt, Pakistan and Oman floated a 10-day truce and a “middle corridor” concept to reopen Hormuz, but both sides appear to be hardening positions. Oman Maritime Risk: Reuters reported a Russian dark-fleet tanker stranded off Dhofar, raising fears of an environmental spill as Omani authorities assess the vessel. Aviation & Connectivity: SalamAir launched direct Muscat–Kigali flights, boosting Oman Vision 2040 tourism and trade links with Rwanda. EU Presence in Muscat: Oman and the EU signed an agreement to establish an EU mission in Muscat, expanding diplomatic reach. Local Economy & Jobs: Oman’s Nama Dhofar Services announced 200 training-linked jobs under Omanisation, while Oman’s labour rules continue to tighten worker protections.

Strait of Hormuz Security: Oman’s authorities helped rescue all 23 crew aboard the Malta-flagged tanker M/T Kavomaleas after it was hit by missiles off Kumzar, with no casualties reported and the fire contained. Regional Escalation: Iran and the US traded strikes again as Bahrain reported intercepted attacks and Iran claimed it stopped “non-compliant” tankers in the Hormuz area, while Houthis warned of a Red Sea blockade that could further disrupt shipping. Diplomacy Under Strain: Iran’s interior minister met mediators in Pakistan as efforts to salvage a collapsed interim US-Iran deal continued, with talk of a proposed 10-day ceasefire involving Omani, Qatari, Egyptian and Pakistani channels. Oman Domestic Oversight: Oman’s Consumer Protection Authority seized nearly 53,000 non-compliant tobacco products in Sur, South Al Sharqiyah, and said legal procedures were initiated. Energy & Business: Petrojet and ENPPI secured a six-year $6bn EPC framework with Petroleum Development Oman, positioning the consortium for future upstream projects.

US-Iran Escalation: The US says it is conducting its 10th straight night of strikes on Iran to reopen the Strait of Hormuz, after another American service member was killed and Iran hit US allies Kuwait, Jordan and Bahrain. Diplomatic Glimmer: Iran’s interior minister has traveled to Pakistan, a key mediator, as the last interim deal collapses and shipping through Hormuz stays largely stalled. Oman in the Mix: Iran says it is coordinating with Oman on Strait of Hormuz security measures, while separate reports note incidents near Oman’s coast and tanker disruptions tied to the wider crisis. Red Sea Shock Risk: Yemen’s Houthis announce a maritime blockade/embargo against Saudi Arabia, warning of wider disruption beyond Hormuz; the UN urges de-escalation as the threat to freedom of navigation grows. Energy Pressure: Oil and fuel prices jump again as markets price in chokepoint risk, with Brent above $88 and US gasoline back around $4 a gallon. Oman Economy Angle: Oman Air’s CEO says the airline is still aiming for profitability despite the war’s disruption, citing route recovery and new GCC/India plans. Regional Security: Kuwait’s Defense minister received Oman’s ambassador as the envoy’s mission ends, underscoring ongoing Oman-Gulf diplomatic engagement amid heightened tensions.