AGP Executive Report

Strait of Hormuz Shock: Iran’s Persian Gulf Strait Authority says it has fully closed Hormuz to all shipping in retaliation for U.S. airstrikes, threatening a major global oil disruption as insurers tighten and shipping halts. Kuwait Oil Sales Shift: Kuwait Petroleum Corp (KPC) is offering crude to Asian refiners directly for the first time since the 1990-91 war, as it tries to protect market share amid the crisis and force majeure conditions. US-Iran Truce Signals: Reports say a U.S.-Iran interim peace framework would reopen Hormuz and lift the U.S. naval blockade, with a formal signing expected in Switzerland on June 19—though details remain unclear. Kuwait Housing Push: Abdullatif Al-Meshari says housing stays a top national priority and highlights the real estate developer program as reform momentum for mortgage and development projects. Education Cooperation: Kuwait’s Higher Education Ministry delegation met Qatar University to expand student exchange and joint research in medicine, health sciences and engineering. AI Infrastructure Deal: KKR, Kuwait Investment Authority, NVIDIA and Vistra launched Helix Digital Infrastructure with $10bn+ for AI data centers, power and connectivity. Regional Logistics Plan: Türkiye and Saudi Arabia plan a rail link via Jordan and Syria to Europe, with Kuwait and other Gulf states potentially joining later.

Hormuz Shock & Shipping Disruption: Iran has ordered a full closure of the Strait of Hormuz to all shipping in retaliation for U.S. airstrikes, a move that could jolt global oil markets and spike insurance and freight costs. Kuwait Energy Moves: Amid the wider crisis, Kuwait Petroleum Corp. has offered crude to Asian buyers directly for the first time since the early 1990s, signaling a push to protect market share as exports face pressure. Kuwait’s Power Security Angle: Kuwait’s renewable energy push is getting renewed attention as officials argue projects like Shagaya can add resilience during supply shocks. Regional Diplomacy for a Deal: Iran and the U.S. are reportedly drafting a memorandum with a 60-day path toward a final settlement, but Tehran says nothing is finalized yet; Kuwait and Qatar also reiterated support for the talks. Industry & Finance: NBK is sponsoring ENCON 5, focusing on investment opportunities in housing and mortgage projects, while Kuwait’s KIA is backing a $10bn AI infrastructure venture with NVIDIA, KKR and Vistra. Local Industry/Services: Kuwait Fire Force brought a scrap yard blaze in Al-Salmi under control; Kuwait also continues municipal cleaning campaigns.

Hormuz Shock to Gulf Trade: Iran announced a full closure of the Strait of Hormuz after U.S. airstrikes, threatening a major spike in oil prices and disrupting shipping and insurance across the region. Kuwait Oil Strategy: Amid the crisis, Kuwait Petroleum Corp. reportedly offered crude to Asian buyers directly for the first time since the early 1990s, signaling a push to protect market share as exports face force majeure. KPC Overseas Gas Move: KPC approved an Egypt gas exploration investment via KUFPEC (40% stake), with first production expected in Q4. Food Supply Focus: India’s ambassador said food shipments to Kuwait are continuing, including perishable mangoes via air logistics, to support Kuwait’s food security. Local Compliance & Labour: Kuwait reminded employers to use the temporary labour transfer grace period (until June 30) via the Ashal Portal, and Kuwait suspended commercial visit visas, affecting short-term business travel. Security & Enforcement: Kuwait dismantled an illegal Captagon operation in Kabd, seizing raw powder and manufacturing equipment. Digital & Youth Economy: Zain Esports powered the PUBG MOBILE MENA Spring Series across seven countries, with Kuwait hosting finals.

Strait of Hormuz Shock: Iran’s Persian Gulf Strait Authority announced a full closure of the Strait of Hormuz on June 11, after U.S. airstrikes, threatening a major global energy crunch as shipping halts and insurance costs jump. Kuwait Oil Market Shift: Kuwait Petroleum Corp reportedly offered crude directly to Asian refiners for the first time since the 1990-91 Gulf War, as the crisis reshapes sales routes and competition. Deal Talk, No Certainty: Trump said a U.S.-Iran peace MoU could be signed Sunday and reopen Hormuz, but Iran and others urged caution, with Pakistan claiming an imminent framework while Tehran denied final confirmation. Kuwait Business Travel Disrupted: Kuwait temporarily suspended commercial visit visas for all nationalities, pausing short-term business entry and affecting sectors like construction, oil & gas, engineering and IT. Manpower Rules Update: Kuwait’s PAM reminded employers to use the temporary labour transfer grace period (May 1–June 30) via the Ashal Portal for eligible SMEs and industrial/agricultural/livestock/fishing workers. Municipal Enforcement: Kuwait Municipality ran a large cleaning and inspection drive in Al Ahmadi, removing 14 vending carts and clearing about 18 tons of waste. Food Security Link: India’s ambassador said mangoes and other essentials continue reaching Kuwait, including via air shipments for perishables. Regional Human Impact: Reports highlighted rising anxiety among Gulf workers and migrants, with Kuwait named among places hit during the wider Iran-U.S. escalation.

Strait of Hormuz Shock: Iran’s newly formed Persian Gulf Strait Authority announced a full closure to all shipping on June 11, citing retaliation for U.S. airstrikes; the move threatens a major supply crunch since the chokepoint carries about 20% of global oil, with shipping halts and insurance costs rising. Kuwait Oil Pivot: Kuwait Petroleum Corp (KPC) offered crude directly to Asian refiners for the first time since the 1990-91 Gulf War, as the war disrupts exports and Kuwait looks to protect market share. Maritime Risk for Kuwait: U.S.-Iran strikes continued for a second day, with reports linking attacks near the Gulf to the deaths of three Indian seafarers—highlighting how quickly commercial shipping routes can become targets. Kuwait Airways Network: Kuwait Airways launched direct flights to Zurich (twice weekly) to tap European summer demand. Local Consumer Impact: Air India Express was ordered to pay KD 3,000 (Rs 3 lakh) after a woman was wrongly denied boarding on a Kuwait-bound flight due to a visa expiry claim. Gold Demand in Kuwait: With regional uncertainty lingering, Kuwaitis increased purchases of gold as prices eased, though making charges stayed high. Defense & Security: Kuwait also appears in the wider regional counter-drone and air-defense conversation as tensions keep escalating around Gulf bases.

Kuwait Oil Exports Pivot: Kuwait Petroleum Corp. has started offering crude directly to Asian refiners for the first time since the 1990-91 Gulf War, a shift from term contracts and tenders as the Iran war disrupts normal sales channels. Hormuz Shipping in “Dark Mode”: Kuwait joined a wider Gulf trend of tankers switching off AIS tracking while transiting Hormuz, with LPG and refined-fuel flows trickling out despite traffic down sharply. Kuwait Airways Network Push: Kuwait Airways launched direct Kuwait City–Zurich flights (twice weekly) to tap European summer demand, adding another European destination to its expansion plan. AI Infrastructure Deal with KIA: KKR, Kuwait Investment Authority, Nvidia and Vistra launched Helix Digital Infrastructure with $10bn+ commitments to build AI data-center, power and connectivity capacity. U.S.-Iran Deal Jitters: Trump says a memorandum could be signed soon in Europe and that strikes were canceled, but Iran insists nothing is finalized; meanwhile, Hormuz reopening and sanctions easing remain the key commercial swing factors. Gulf Security Aftermath: Analysts say Gulf states will need new collective security arrangements once the Iran war ends, as U.S. bases in the region have been repeatedly targeted.

Middle East Energy Shock: Trump says he cancelled threatened strikes on Iran and claims a “great settlement” could be signed in Europe within days, with the Strait of Hormuz set to reopen after signing—while Iran’s foreign ministry says no final decision has been made, keeping uncertainty high for shipping and oil flows. GCC Security Response: The GCC urged Iran to stop targeting Gulf states, condemning drone and missile attacks on Bahrain, Kuwait and Jordan and stressing collective defense readiness. Kuwait Oil Pricing Move: Kuwait cut its July crude official selling price for Asia buyers, signaling softer demand signals and sharper competition in the Asian refining market. Maritime Risk for Gulf Trade: Reports highlight deaths of Indian seafarers after US strikes on a tanker near Oman amid the blockade and Hormuz disruption, underlining rising exposure for the shipping community. AI Infrastructure Investment: KKR launched Helix Digital Infrastructure with $10bn committed capital (including Kuwait Investment Authority and Nvidia/Vistra) to build next-gen AI data center power, connectivity and delivery capacity. Kuwait-India Food Trade Spotlight: Kuwait hosted an 11-day Indian Mango Festival at The Avenues, boosting fresh food and agri-trade visibility between the two countries.

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.