AGP Executive Report

Gulf Energy Shock: Trump abruptly called off renewed US strikes on Iran, saying “final points” were approved at the highest Iranian leadership level and that the naval blockade stays in force until a deal is signed soon; the move followed earlier threats to hit “very hard” and seize Kharg Island, Iran’s key oil terminal—keeping Strait of Hormuz risk front and center for global supply and prices. Kuwait Exposure: With Iran firing at US-linked bases across the region, Kuwait was repeatedly named among targets as airspace disruptions and heightened alerts spread, underlining how quickly regional security can spill into industrial logistics. KUFPEC Outlook: Kuwait’s KUFPEC warned profits may fall sharply in 2025 due to weaker oil prices and oversupply, plus maintenance and project work—an added reminder that energy market volatility is already hitting local operators. GCC Diplomacy: Kuwait’s FM joined GCC-Canada strategic talks in Bahrain, focusing on trade, food security, energy and logistics, while discussing implications of Iranian attacks on GCC stability. Tech & Security: Liquibase launched a free CVE library for community users, a small but relevant signal for cyber risk management in enterprise software.

Gulf Security Shock: The US launched a second straight night of “self-defense” strikes on Iran after Trump said Tehran must “pay the price” for stalled talks, while Iran retaliated by targeting US-linked bases in Bahrain, Kuwait and Jordan; Kuwait temporarily closed its airspace and air defenses intercepted incoming threats. Hormuz Energy Risk: Iran claimed it fully shut the Strait of Hormuz to commercial shipping, though the US disputed it—raising fresh fears for global oil and LNG flows. Kuwait On Alert: Reports said Iranian drone and missile activity hit or threatened Kuwait, with airspace disruptions and heightened regional security warnings. Shipping Incident: A US strike on the Palau-flagged tanker Settebello near Oman left three Indian sailors missing; India summoned a senior US diplomat over the attack. Industry Watch: Americana Restaurants opened the first carpo luxury store in Qatar, with carpo rights also covering Kuwait—signaling continued premium food retail expansion despite regional volatility. Kuwait Finance: Kuwait has issued about 7.1bn KWD in bonds, nearing 23% of its 30bn KWD debt ceiling as it funds projects amid Hormuz disruption.

Kuwait Security & Energy Risk: The US launched airstrikes on Iran after blaming Tehran for the downing of a US Apache helicopter near the Strait of Hormuz, and Iran retaliated by firing missiles and drones at US-linked bases in Kuwait, Bahrain and Jordan—raising fresh fears for the fragile ceasefire and for oil and shipping flows through the Gulf chokepoint. Defense Procurement: The US approved a $1.98bn counter-drone sale to Kuwait (Anduril systems) to defend against drone-swarm attacks, as regional threats intensify. Shipping & Markets: Reports say US forces disabled an Iranian-linked tanker in the Gulf of Oman for violating the blockade, while traders watched oil prices and risk sentiment amid renewed strikes. Local Infrastructure (Housing Cities): Kuwait’s PAHW rolled out tenders for roads, utilities and water towers in new residential areas, plus consultancy work for a planned integrated medical city in Sabah Al Ahmad. Digital & Workforce: KISR launched its 47th summer training program for students, and Kuwait hosted an influencers and content creators forum focused on digital media, marketing and cybersecurity.

Kuwait Air Defense Upgrade: After a deadly Iranian drone attack on Kuwait International Airport, the US approved a ~$1.98bn sale of Anduril counter-drone systems to Kuwait, aiming to strengthen layered C-UAS coverage. Regional Security Shock: Escalation between the US and Iran intensified after a US Apache helicopter crash near the Strait of Hormuz; Washington carried out “self-defence” strikes on Iran, and Tehran retaliated with missile/drone attacks targeting Bahrain, Kuwait and Jordan, with air defenses activated across the Gulf. Energy & Shipping Pressure: The Hormuz crisis is again rattling oil and LNG flows and global supply chains, while Kuwait reportedly offered crude cargoes to Asian refiners for the first time since the war began. Industrial Contracts: Kuwait Oil Company awarded L&T a KD303.5m ($992m) deal for export crude storage and energy infrastructure upgrades at Mina Al Ahmadi. Workforce Policy: Kuwait banned hiring domestic workers from Kenya and 25 other African countries, tightening recruitment rules for household labor.

Kuwait Oil & Shipping: Kuwait Petroleum Corp has started offering crude to Asian refiners for the first time since the Iran war began, with at least 4 million barrels of its main grade loaded on two VLCCs cleared through the Strait of Hormuz—an early sign flows are reopening, though still far below pre-war levels. Energy Infrastructure: L&T won a KD303.5m ($992m) Kuwait Oil Company contract for export crude storage facilities and upgrades to oil export infrastructure at Mina Al Ahmadi. Defense & Security: Iran’s foreign ministry alleged the US staged a false-flag drone attack on Kuwait International Airport to justify a nearly $2bn counter-drone sale; the claim follows a US State Department notification for $1.98bn in systems. Regional Risk to Trade: AD Ports Group began trial operations at Safaga 2 terminal in Egypt, a $200m logistics push tied to the Safaga–Qena–Abu Tartour corridor. Public Oversight: Kuwait’s Health Ministry issued 50 citations to salons and health institutes after inspections focused on infection control and sterilization compliance. Finance Integrity: Kuwait’s Financial Intelligence Unit said it is upgrading tools and partnerships to fight money laundering and terrorism financing. Environment & Community: Gulf Bank launched a beach cleanup near Kuwait Towers for World Oceans Day. Oil Market Watch: Analysts flagged that Hormuz reopening timing will keep prices volatile, with Fitch forecasting Brent averaging around $87 in 2026 if the strait returns by end-July.

Kuwait Security & Defense: The U.S. approved a nearly $2bn sale of counter-drone systems to Kuwait, following Iran-linked attacks that damaged Kuwait International Airport and heightened regional air-defense needs. Strait of Hormuz Disruption: With the Strait of Hormuz under strain, carriers froze bookings and rerouted cargo away from Bahrain’s port, while analysts warned that even “paper” oil output hikes may not translate into real barrels reaching markets. Oil Market Policy: OPEC+ agreed to raise July output by 188,000 bpd for the fourth straight month, but the physical impact is likely limited by ongoing export bottlenecks. Kuwait Corporate Finance: Agility’s Tristar secured a $770m credit facility to refinance debt, with plans to add a $30m Shariah-compliant tranche. Industrial Compliance: Kuwait’s Public Authority for Industry shut 51 industrial plots for legal violations, while Kuwait Municipality launched inspections to clamp down on unlicensed shops and illegal advertisements. Local Business & Services: Ray by Cloud 7 opened in Mangaf, adding a new lifestyle hotel concept to Kuwait’s hospitality scene. Cross-border Services: Arabian Flora expanded a 10-country network to let Gulf workers send same-day Father’s Day gifts to families in their home cities.

Kuwait Enforcement Drive: Kuwait Municipality launched a field inspection campaign across all six governorates to check health licenses for commercial establishments and crack down on illegal shop and commercial advertising, issuing violations and warnings in Farwaniya before rolling out further inspections. Energy Markets & OPEC+ Quotas: OPEC+ agreed to raise July oil output by 188,000 bpd, including Kuwait’s 16,000 bpd share, but analysts warn the Strait of Hormuz closure keeps the real supply impact limited. Kuwait Oil Infrastructure Deal: Kuwait awarded a roughly $992m export crude storage and oil export infrastructure upgrade contract to Larsen & Toubro (L&T), covering storage for Kuwait Export Crude and Jurassic crude. Petrochemicals Downstream Planning: KPC’s Petrochemical Industries Company (PIC) launched a limited tender for a preliminary study to identify downstream investment opportunities for Kuwait’s private sector, focusing on polypropylene-linked manufacturing. Local Business & Capital Markets: Action Energy showcased its landmark Kuwait IPO at Arqaam Capital’s MENA investor conference, highlighting governance and audit practices that helped attract institutional demand. Regional Security Spillover: Iran fired ballistic missiles and drones toward Bahrain and Kuwait, intercepted by regional forces, as the US weighs redirecting frozen Iranian assets for Gulf reconstruction amid a fragile ceasefire. Trade Policy Watch: The US proposed new Section 301 forced-labor tariffs on imports from 60 economies, with potential implications for exporters and supply chains tied to global trade.

Gulf Security & Airspace: Iran fired ballistic missiles and drones toward Bahrain and Kuwait, with US forces intercepting most missiles and downing drones near the Strait of Hormuz; Kuwait reported material damage and no casualties, while Bahrain urged residents to seek shelter. Ceasefire Under Strain: Israel struck Beirut’s southern suburbs days after a Lebanon ceasefire took effect, as Hezbollah-linked attacks continued and both sides traded warnings of wider escalation. Energy Markets: Oil jumped sharply as Iran–Israel exchanges threatened the fragile truce and kept the Strait of Hormuz effectively constrained; OPEC+ still approved a fourth consecutive July output quota increase of 188,000 bpd, though analysts say it may be largely symbolic while flows remain disrupted. Kuwait Policy/Industry: The US approved in principle a potential $1.98bn counter-drone defense sale to Kuwait, aimed at detecting and defeating unmanned threats. Sustainability Finance: NBK launched a new Sustainable Financing Framework, enabling green, social, blue and sustainability financing with an “Excellent” rating from Sustainable Fitch. Digital Inclusion: Kuwait’s Ministry of Electricity, Water and Renewable Energy rolled out a new accessibility-focused digital services system for people with disabilities. Assets & Reconstruction: Iran rejected US plans to use frozen Iranian assets to compensate Gulf allies for war damage, warning it would be unlawful.

Gulf Security & Trade Disruption: Iran fired ballistic missiles and drones toward Bahrain and Kuwait; CENTCOM said several missiles and drones were intercepted and radar sites hit, while the Strait of Hormuz remains a major shipping risk. Air Defense Procurement: Kuwait is set to reinforce layered counter-drone capabilities with cost-effective systems after repeated attacks. Aviation Impact: IATA warned Kuwait’s main airport terminal could face up to a year of recovery after strike damage, with airlines shifting operations and Terminal 2 work discussed as a workaround. Oil Market Signals: OPEC+ approved a July quota increase of 188,000 bpd despite Hormuz closure, with analysts calling it mostly symbolic while physical barrels remain constrained. Budget Pressure From Hormuz: Kuwait’s oil revenue outlook is increasingly disconnected from headline barrel-price figures due to near-stalled exports. Sustainability & Finance: Boursa Kuwait renewed climate action commitments on World Environment Day, and NBK launched a new Sustainable Financing Framework rated “Excellent” by Sustainable Fitch. Food Safety: PAFN marked World Food Safety Day, stressing safe practices across the food supply chain and mall awareness campaigns. Maritime Regulation: Kuwait published a new decree law updating rules for maritime establishments and floating units, including licensing, insurance, safety requirements and AIS use.

US-Iran Gulf Escalation: The US Central Command says it shot down two more Iranian one-way attack drones threatening shipping in the Strait of Hormuz, after earlier strikes on Iranian coastal radar sites near Goruk and Qeshm Island. Kuwait & Bahrain Under Fire: Iran’s IRGC claimed attacks on US-linked bases in Kuwait and Bahrain, while Kuwait reported intercepting missiles and drones and said damage occurred without casualties. Frozen Iranian Assets for Gulf Repairs: Washington is weighing redirecting frozen Iranian assets to help Gulf allies fund rebuilding and repairs tied to damage from Tehran-linked attacks, a move that could further complicate stalled US-Iran talks. Oil Market Pressure: With Hormuz effectively choked since late February, OPEC+ ministers are set to discuss higher output quotas, but analysts warn geopolitical limits may blunt any price relief. Regional Security Recalibration: The renewed flare-up adds pressure on ceasefire efforts as Pakistan’s Mohsin Naqvi heads to Tehran to mediate.

Gulf Security Shock: Kuwait and Bahrain reported fresh Iranian missile and drone attacks early Saturday, with air defences intercepting incoming threats and Kuwait’s foreign ministry calling it a blatant violation of sovereignty and international law; Iran says the US struck radar facilities on Qeshm Island and near Sirik, while the US says it shot down missiles/drones and hit coastal surveillance sites to protect maritime traffic. Aviation Disruption: Kuwait air traffic resumed after a temporary suspension tied to the attacks, while airlines adjusted routes and flights were diverted during the alert. Defense Procurement: The US approved a major counter-drone sale to Kuwait worth about $1.98bn, as regional tensions keep pushing air-defense upgrades. Market & ESG: Boursa Kuwait published its fifth standalone Sustainability Report for 2025, as sustainability reporting moves toward mandatory regulation. Airport Expansion Tender: Kuwait’s public tenders opened bids for operating and maintaining the new Kuwait International Airport passenger terminal T2 and related parking areas, targeting up to 25m passengers annually. Co-op Compliance: Kuwait’s Social Affairs ministry ordered cooperative societies to enforce strict fingerprint attendance tracking and urged summer hiring of young Kuwaitis. Corporate Sustainability: Zain’s 2025 sustainability push highlights centralized ESG data automation and integrated decision-making.

Gulf Security Escalation: The US and Iran traded strikes again as Washington said it shot down four Iranian drones toward the Strait of Hormuz and hit coastal radar sites on Qeshm Island and in Goruk, while Iran fired seven ballistic missiles toward Kuwait and Bahrain—six intercepted, one missed—prompting air-raid sirens and “hostile” missile/drone alerts in both Kuwait and Bahrain. Kuwait Airport Fallout: The renewed flare-up follows the earlier Iran drone attack on Kuwait International Airport that killed one Indian national and injured dozens, raising fresh questions about how quickly Kuwait’s defenses can respond to short-range threats. Defense Procurement: The US approved about $3bn in possible foreign military sales, including a $1.98bn Kuwait package for counter-drone systems led by Anduril. Business/Tech Link: SAP appointed Saqib Sabah to lead its MEA North Growth Cluster, covering Pakistan, Kuwait and Bahrain. Travel Disruption: IndiGo suspended flights to and from Kuwait amid continued airspace closure and aviation restrictions.

Kuwait Security & Aviation: Iran-linked attacks on Kuwait’s airport and U.S. bases kept the Gulf on edge, with Kuwait reporting interceptions of missiles and drones and the airport briefly disrupted after a terminal was hit. Ceasefire Talks Under Strain: Iran reiterated that any broader U.S.-Iran deal depends on a Lebanon ceasefire, while Hezbollah rejected a U.S.-brokered Israel-Lebanon truce and demanded Israeli withdrawal—raising doubts over the wider peace track. Maritime Tensions: Iran’s navy said it fired warning missiles and drones at U.S. warships in the Gulf of Oman, as the U.S. continued sanctions enforcement and interdictions tied to Iran-linked shipping. Nuclear Oversight: The UN nuclear watchdog (IAEA) said it cannot inspect key Iranian facilities affected by last June’s war, limiting verification of enriched uranium stocks. Oil & Industry Impact: Oil prices eased after ceasefire hopes, but the Strait of Hormuz remains largely constrained and Iran’s exports reportedly hit a six-year low under the U.S. naval blockade—keeping pressure on regional energy and logistics. Kuwait Energy Projects: Kuwait moved ahead with downstream contracting steps, including refinery-related tender activity and plans tied to major petrochemical and refinery work.

Ceasefire Crossroads: Israel and Lebanon agreed to implement a ceasefire, but Hezbollah immediately rejected the terms, saying resistance will continue unless Israel withdraws—casting fresh doubt on US efforts to broker a wider Iran deal. Kuwait Under Strain: Iran-linked attacks hit Kuwait International Airport, damaging terminals and injuring dozens, while the US and Iran trade strikes near the Strait of Hormuz—keeping energy and security nerves high. Oil & Markets: Oil prices slid on hopes of easing tensions, even as Kuwait’s oil sector signaled a recovery to 70% capacity within 6–8 weeks after Hormuz reopening. US Politics, Gulf Risk: The US House passed a resolution to restrict Trump’s Iran war powers, adding domestic pressure as negotiations stall. Energy Logistics: Kuwait is exploring options to boost overseas oil storage after shipment disruptions through Hormuz. Trade & Labor: Kuwait’s SME sector led expatriate transfer requests under the new restricted-sector transfer policy, with 14,440 beneficiaries reported so far.

Kuwait Airport Recovery: Kuwait Airways and Jazeera Airways resumed full operations after an Iranian drone strike damaged Kuwait International Airport, with authorities citing completed safety checks and released CCTV footage; Iran denies responsibility and blames a US interceptor. Nuclear Oversight: The UN nuclear watchdog (IAEA) said it cannot verify Iran’s enriched uranium stockpile because war-damaged sites remain off limits, leaving safeguards duties “unable to discharge.” Ceasefire Reality Check: US-brokered ceasefires across the region are still failing to stop violence, with Hezbollah rejecting a new Israel-Lebanon deal and demanding full Israeli withdrawal, while strikes continue in Gaza and Lebanon. Oil & Markets: Oil slipped after Lebanon-Israel ceasefire hopes, but traders stayed cautious as Iran-US tensions keep the Strait of Hormuz risk front and center; the Dow jumped on optimism about an Iran peace deal, even as global oil inventories are seen as dangerously low. Local Industry & Sustainability: Gulf Bank ran a World Environment Day workshop teaching customers to recycle coffee grounds into compost for agriculture. Business/Finance: White & Case advised AD Ports Group on financing for Egypt’s Safaga Terminal project, highlighting regional port investment momentum. Aviation/Regional Trade Impact: India’s LPG imports shifted sharply toward the US after Hormuz disruptions, underscoring how Gulf instability reshapes energy supply chains. Innovation Spotlight: Kuwait’s GreenTech Innovators awards showcased student AI/STEM projects tackling local environmental challenges.

Kuwait Airport Under Fire: Iran’s drone attack hit Kuwait International Airport’s Terminal 1, killing at least one person and injuring 63; Kuwait suspended flights and said its airspace wasn’t used to attack any country, while Prime Minister Sheikh Ahmad Abdullah Al-Sabah visited the damage site. Diplomatic Fallout: India’s ambassador to Kuwait visited the mortuary and injured nationals, coordinating repatriation and hospital follow-up. Gulf Energy Shock: Oil jumped toward $100 as US-Iran tensions flared again, with the Strait of Hormuz still a key concern for shipping and fuel supply. Ceasefire Hope, Ceasefire Stress: Israel and Lebanon agreed to implement a ceasefire after US-mediated talks, but renewed violence elsewhere kept markets nervous. US Politics, Iran War Powers: The US House passed a resolution to halt further military action in Iran, a symbolic rebuke that still faces Senate hurdles. Market Mood: Global equities slid on renewed Middle East risk, while Kuwait’s local business impact is likely to be felt through higher energy costs and disrupted aviation operations.