AGP Executive Report

Gulf Shipping Shock: The U.S. and Iran traded fresh strikes after Trump declared the U.S.-Iran ceasefire “over,” with missiles and drones reported hitting U.S.-linked sites tied to Kuwait and Bahrain and shipping through the Strait of Hormuz plunging as tanker traffic slowed and routes shifted. Kuwait Security: Kuwait reported intercepting ballistic missiles and drones amid the escalation, underscoring how the conflict is spilling into local airspace and maritime risk. Diplomacy Under Strain: Qatar and other regional mediators pushed for renewed talks even as Washington demanded Iran publicly confirm Hormuz is open and ships won’t be attacked, while Iran signaled it wants control of transit and fees. Energy Market Pressure: Oil prices jumped on renewed risk, with analysts warning the Strait disruption could keep energy supply recovery uncertain. Nuclear Oversight Hit: The UN said the IAEA lost full monitoring continuity of Iran’s nuclear program after strikes, raising stakes for any future deal.

Kuwait Security & Airspace: Kuwait’s Defense Ministry said it intercepted 3 ballistic missiles, 1 cruise missile and 10 drones after an airspace breach, with one person injured by falling debris. Gulf Shipping & Energy Risk: With the US-Iran ceasefire effectively collapsing, Strait of Hormuz traffic fell sharply—only two oil tankers reportedly crossed in early hours Thursday and commercial transits dropped to about 13 vessels in 24 hours—pushing oil prices higher and raising supply fears. US-Iran Escalation: The US carried out strikes hitting about 90 Iranian targets along Iran’s coastline for a second day, while Iran retaliated by targeting US-linked bases in Kuwait, Bahrain and Qatar; mediators including Qatar and Pakistan urged de-escalation and renewed talks. Diplomacy in the Region: UAE President Sheikh Mohamed bin Zayed arrived in Kuwait for talks with the Emir amid renewed hostilities; meanwhile, India’s EAM S Jaishankar visited Kuwait and discussed the Gulf conflict’s impact on the India-Kuwait strategic partnership. Markets Watch: Nasdaq jumped as chip gains offset Middle East worries, while investors tracked ongoing technical talks and the next energy-market updates.

Kuwait-Energy Security: The GCC issued its strongest condemnation of Iran’s attacks on the Saudi tanker “Wadiyan” and the Qatari tanker “Al Rekayyat,” calling them a direct threat to maritime safety and global energy supplies, and also condemned repeated strikes on Bahrain and Kuwait as violations of international law and UN rules. Strait of Hormuz Disruption: A UK maritime monitor said Hormuz traffic “effectively grind[ed] to a halt” after renewed US-Iran clashes, with shipping volumes falling sharply again. Ceasefire Collapse: Trump declared the US-Iran truce “over” at the NATO summit in Ankara after IRGC retaliation against US airstrikes, with oil prices jumping as markets priced higher risk. Regional Fallout for Kuwait: Iran said it hit US military targets in Kuwait, Bahrain and Qatar following US strikes, while Kuwait reported intercepting aerial threats and damage from debris in earlier reports. Local Business & Digital Services: Kuwait moved to streamline e-signatures via the “My Identity” app and launched Sahel payments for state property dues, while the Commerce Ministry issued new rules for e-commerce intermediary platforms and delivery arrangements. Renewables Investment: Kuwait-based Alternative Energy Projects Company (AEP) plans an equity raise led by Kamco Invest and Burgan Bank to expand solar and hybrid projects across Kuwait and the wider MENA region. Culture & Community: Zain Kuwait sponsored “Watani,” a live orchestral celebration of Kuwait’s musical heritage marking the 65th anniversary of independence.

US-Iran Escalation Hits Kuwait: The US and Iran traded fresh strikes for a second straight day over the Strait of Hormuz, with Washington saying it hit about 90 Iranian military targets to protect navigation and Tehran retaliating by targeting US-linked bases in Kuwait and Bahrain; Kuwait reported intercepting hostile missiles and drones as sirens sounded and power lines were affected. Ceasefire in Question: Trump declared the interim MoU “over” while leaving room for talks, warning of “hard” follow-up strikes and even threats against civilian infrastructure and Kharg Island. Shipping Risk Jumps: Traffic through the strait reportedly ground to a near halt again, deepening uncertainty for Gulf logistics and energy flows. Market Pressure Across the Gulf: Gulf stock markets extended losses as oil prices spiked on renewed hostilities, while investors stayed risk-off. Global Economic Warning: The IMF warned Middle East conflict risks fueling inflation and disrupting energy supplies, with knock-on effects for growth.

Gulf Security Shock: Kuwait condemned repeated Iranian attacks as a violation of sovereignty, saying its forces intercepted 2 ballistic missiles and 13 drones with no casualties, while debris damaged electricity transmission lines but essential services continued. US-Iran Escalation: Trump said the US-Iran interim ceasefire is “over” and warned of more strikes “tonight,” as CENTCOM reported fresh attacks aimed at degrading Iran’s ability to threaten navigation in the Strait of Hormuz after tanker incidents. Retaliation Cycle: Iran’s IRGC claimed it struck 85 US-linked military sites in Kuwait and Bahrain, as both sides traded accusations of breaking the Islamabad MoU. Energy & Trade Impact: Oil jumped sharply on renewed Hormuz risk, reviving fears of supply disruptions for Gulf energy and shipping. Kuwait Business & Investment: Prime Minister Sheikh Ahmad Al-Abdullah met Brookfield CEO Bruce Flatt to boost foreign investment and trade cooperation. Market Skills Push: Boursa Kuwait will host CODED Academy’s UNICODE Program to build tech and financial skills for youth. Local Enforcement: Kuwait Municipality launched a nationwide campaign to remove encroachments on state properties after deadlines ended.

Gulf Security Shock: The US and Iran traded fresh strikes after attacks on commercial vessels in the Strait of Hormuz, with Washington revoking a license for Iranian oil sales and Tehran hitting US-linked bases in Bahrain and Kuwait; Kuwait Response: Kuwait’s Foreign Ministry condemned the Iranian attack on a Saudi tanker in the Strait of Hormuz and urged de-escalation, while the Ministry of Electricity, Water and Renewable Energy said power was restored to all affected residential areas after outages; Diplomatic Push: The EU condemned the attacks on Bahrain and Kuwait and said EU foreign ministers will meet Gulf neighbors next Monday to back de-escalation and protect freedom of navigation; Markets Watch: Oil jumped more than 3% as the renewed escalation threatened the fragile ceasefire, while regional risk sentiment worsened.

Security & Compliance: Kuwait’s Interior Ministry reminded covered businesses to install and maintain CCTV under Law 61/2015, keeping footage unaltered for 120 days, with penalties for tampering and privacy breaches. Municipal Enforcement: Kuwait Municipality began removing illegal fences, diwaniyas and landscaping after a July 6 grace period ended, targeting encroachments on state land. Industrial Governance: The Public Authority for Industry and Kuwait Financial Intelligence Unit signed a cooperation deal to share industrial and licensing data to help combat money laundering and terrorism financing. Trade & Consumer Protection: Kuwait shut two shops in Al-Ahmadi over thousands of counterfeit luxury items, seizing 2,059 fakes and filing violations. Energy & Shipping Risk: NATO foreign ministers met Gulf counterparts including Kuwait to discuss Strait of Hormuz security after renewed attacks on commercial vessels; the situation continues to sway oil and gas flows. Diplomacy & Industry Links: India’s Jaishankar arrived in Kuwait for talks on trade, investment and energy security, as Kuwait also participated in Russia’s INNOPROM industrial exhibition. Telecom Upgrade: Zain Kuwait earned TM Forum validation for AI-powered autonomous network performance, including top scores in fault management and energy efficiency.

GCC Tech & Data: OriginChain appointed bluarrows as its official GCC partner to expand enterprise adoption of OriginChainDB, an AI-native multi-model database platform for Kuwait and the wider region. Gulf Energy & Shipping Security: NATO foreign ministers met Gulf Arab counterparts in Ankara to address the Hormuz stalemate and discuss a multinational maritime mission to protect commercial transit, as Iran-linked attacks and mine risks keep shipping costs elevated. Oil Market Watch: Saudi cut August Arab Light crude prices to Asia by $11/bbl (biggest in over two decades) as Hormuz flows recover and OPEC+ lifts output by 188,000 bpd for August, with Kuwait among the producers. Kuwait Energy & Industry: Action Energy and Kellton formed a GCC AI digital transformation JV for the energy sector, while Kuwait’s Public Works ministry inspected the first weigh-in-motion truck monitoring site on the Seventh Ring Road to curb overloaded vehicles. Food & Consumer Compliance: Kuwait’s Commerce and Industry ministry issued 35 violation reports, including expired cosmetics and illegal subsidized food sales, and Kuwait Municipality launched a nationwide alley-cleaning campaign. Humanitarian Diplomacy: UN Human Rights Council unanimously adopted a Kuwait-sponsored resolution on protecting humanitarian workers and ensuring access to aid in armed conflicts.

Humanitarian Protection: Kuwait-backed UN Human Rights Council resolution on protecting humanitarian workers in armed conflicts was adopted unanimously in Geneva, citing last year as the deadliest on record for aid personnel. Labour Rights Coordination: Kuwait’s Foreign Affairs Human Rights Department and the Public Authority for Manpower held talks to strengthen coordination and improve labour protection, aligning policy with ILO and international human rights commitments. AI for Energy: Action Energy and Kellton launched a GCC-focused AI-led digital transformation JV, with Action Energy holding 51%, aiming to deploy Kellton’s OPTIMA digital oilfield platform across oil & gas operations. Oil Market Watch: OPEC+ agreed to raise August output by 188,000 bpd, including Kuwait, as Hormuz recovery remains uncertain and prices react to shifting supply expectations. Consumer Protection: Kuwait’s Commerce and Industry Ministry stepped up inspections, issuing 35 violation reports and closing a grocery store over expired cosmetics, unknown-origin goods, and sale of subsidized food. Air Defence Upgrade: Kuwait ordered NASAMS air defence in a $400m Kongsberg-Raytheon deal to strengthen layered protection amid regional drone and missile threats. Water Disruption: Scheduled maintenance may reduce water flow in Riqqa, Fahad Al-Ahmad and Sabahiya on July 8. Summer Rider Support: Deliveroo Kuwait rolled out a rider wellbeing program with hydration stations, cooling kits and rewards during the summer.

Oil & Kuwait Energy: OPEC+ agreed to lift August output targets by 188,000 bpd, with Kuwait among the seven countries raising quotas as Strait of Hormuz exports recover; the move is the fifth monthly increase, but analysts say it’s still “mostly on paper” while shipping and compliance remain uneven, keeping Brent around the low-$70s. Defense Tech for Kuwait Navy: French HGH won a contract via EDGE/Abu Dhabi Ship Building to fit eight Al Dorra-class offshore patrol vessels for Kuwait with 360° infrared surveillance cameras and software, integrated into Leonardo’s combat management system. GCC Construction Tech: GCC construction is shifting from pilot 3D concrete printing to mega-scale projects, with Kuwait cited for tapered water tanks that cut material use by 25%, as regional contractors chase faster, lower-waste builds. Kuwait Industry & Energy Digitalization: Action Energy (AEC) and Kellton launched a GCC AI joint venture to roll out AI-driven digital oilfield solutions, starting with Kuwait and expanding regionally. Regional Policy Watch: Kuwait is also pushing coordination among oil producers amid rapid market changes, as global markets react to the OPEC+ supply outlook.

OPEC+ Output Call: Seven OPEC+ members, including Kuwait, agreed to raise August 2026 quotas by 188,000 bpd as Gulf supply normalises after Strait of Hormuz disruptions, with Kuwait’s August production set at 2.66m bpd and the bloc stressing a cautious, flexible approach. Kuwait Oil Recovery: Reports say Kuwait’s crude output rebounded sharply in June, with production climbing from 580,000 bpd in May to about 1.9m bpd in late June, alongside lifting force majeure notices as exports resumed. Kuwait Airport Reopens (Partial): Kuwait International Airport is operating again with Kuwait Airways and Jazeera running scheduled flights, but Terminal 1 remains closed for repairs. Transport Rules Update: Kuwait’s Interior Ministry issued a resolution regulating passenger transport and brokerage via electronic apps, requiring licensing, approved operations, and electronic trip logs. Digital Talent Push: Markaz will sponsor UNICODE 2026 to build Kuwait’s next-gen tech skills, while stc launched a month-long summer youth training programme. Markets & Energy Mood: Gold posted its first weekly gain in five weeks as a weaker dollar and softer US data boosted demand, while oil prices steadied near pre-conflict levels amid the quota ramp-up.

OPEC+ Watch: OPEC+ is set to agree another August output increase of about 188,000 bpd as Strait of Hormuz shipping gradually reopens, with Gulf producers restoring supply after months of disruption. Kuwait Energy & Industry: SLB will build a new technology facility in Kuwait under KOC’s Ahmadi Innovation Valley, aiming to scale oilfield R&D and digital innovation from 2026 to 2028. Kuwait Oil Sector Governance: Kuwait’s new KPC Decree-Law No. 67 of 2026 is expected to reshape contracting rules, including a ban on local/commission agents in future KPC contracts, while keeping oversight via post-audit. Local Housing Pressure: Kuwait’s housing delays and plot scarcity are pushing prices higher, with citizens reportedly waiting over a decade for government housing. Environment & Waste: Kuwait steps up its plastic pollution campaign with awareness drives and partnerships, targeting single-use plastics and marine ecosystem risks. Cost of Living: Kuwait’s 2026/27 budget keeps subsidies for basic commodities and ration-card support to ease living costs. Regional Diplomacy: India’s EAM S. Jaishankar begins a six-nation tour including Kuwait, focusing on Gulf ties, energy security, and regional stability.

Housing & Cost of Living: Kuwait’s housing crunch is still biting, with experts pointing to long government housing waiting lists and limited plot availability that keeps prices elevated, while the 2026/2027 state budget flags continued subsidies for basic commodities to cushion living costs. Environment & Waste: Kuwait Environment Protection Society and the Environment Public Authority renewed calls to cut plastic pollution, warning about marine impacts, microplastics, and the need for better waste management and recycling. Oil & Shipping Watch: Gulf crude exports rebounded in June as Strait of Hormuz traffic gradually recovered, but Iran also issued fresh navigation directives to tankers, keeping energy-security nerves high. KPC Contracting Update: Kuwait’s new KPC decree-law is drawing attention for how it may speed contracting decisions while tightening oversight, including a ban on local/commission agents in future KPC-related contracts. Banking & Youth Finance: NBK Wealth won “Kuwait’s Best for Next-Gen 2026,” and Gulf Bank picked up awards for branch innovation and Gen Z-focused products. Regional Diplomacy: India’s Jaishankar is set for a Gulf tour including Kuwait, as US-Iran talks and Hormuz tensions remain central to the region’s agenda.

KPC Law Update: Kuwait’s Al-Itqan Legal Group says Decree-Law No. 67 of 2026 for KPC will speed contracting decisions via exemptions from some prior approvals, while keeping oversight through post-audit checks—and it also bans local/commission agents in future KPC and subsidiary contracts. Strait of Hormuz Watch: Iran issued a hardline directive to oil tankers and commercial vessels to follow Tehran-approved routes or face “immediate and forceful response,” keeping shipping risk in focus even as flows recover. June Oil Flows: Gulf crude exports jumped to over 10m bpd in June, led by the UAE, as the US-Iran ceasefire helped clear a backlog—though volumes still sit about 40% below pre-war levels. Oil Prices Steady: Brent and WTI stayed in a tight range as traders weighed fragile US-Iran peace hopes against ongoing toll and administration disputes. Kuwait Security Tech: HGH is set to equip Kuwait’s Al Dorra patrol vessels with infrared surveillance, boosting maritime monitoring capacity. Environment & Industry: KEPS warned plastic pollution is threatening marine ecosystems and food security, urging stronger land-based waste management to cut the bulk of runoff-driven pollution. Finance Spotlight: BCG reports GCC asset management hit $2.7tn in 2025 (+10%), with Kuwait among the key players in pension and sovereign wealth activity.

Environment Watch: Kuwait Environment Protection Society (KEPS) marked International Plastic Bag Free Day warning that plastic pollution is harming marine life, biodiversity and food security, with most ocean waste traced to land-based mismanagement and storm runoff. Energy & Trade: Oil prices stayed in a tight range as markets weighed fragile US-Iran peace hopes and improving Strait of Hormuz activity; Gulf exports rose in June and Kuwait’s crude output jumped sharply after the US-Iran understandings. Maritime Security: US and Iran indirect talks in Doha continued without a major breakthrough, while the UN Security Council saw a heated exchange over attacks affecting Bahrain and Kuwait and the future of Hormuz navigation. Kuwait Defense Procurement: HGH will equip Kuwait Navy’s Al Dorra offshore patrol vessels with SPYNEL 360-degree infrared surveillance under a contract tied to ADSB builds. Kuwait Oil Infrastructure: KPC is seeking consortia for a major $7bn oil pipeline stake sale, with bidders asked to form groups. Digital & Consumer Tech: YouTube launched supervised kid accounts across MENA including Kuwait, adding age-appropriate controls and Shorts viewing limits. Finance: National Investments Company won multiple Global Banking & Finance Review Awards for investor relations, investment brand and asset management in Kuwait.

Kuwait Oil Output Surge: Kuwait Petroleum’s crude production jumped to about 1.65 million bpd in June (and up to 1.9 million bpd in the last 10 days) after improved Gulf exports tied to the US-Iran interim understandings, with force majeure lifted and cargo offers resuming. Strait of Hormuz Security: A US-led Bahrain meeting with 12 Middle East countries, including Kuwait, agreed to intensify efforts for uninterrupted shipping through Hormuz, while UN officials warned of miscalculation risks as tensions persist. Kuwait Food & Energy Security: Kuwait joined GCC agriculture and food-security talks on strategic regional food storage zones, and ministers also reviewed cooperation to strengthen energy supply chains. Digital Finance Momentum: NBK was highlighted as a leading enabler of Kuwait’s FinTech ecosystem, with growth driven by investments in core banking and digital platforms. Workforce Mobility: Kuwait’s Public Authority of Manpower said over 27,000 expat workers benefited after the two-month end of a transfer ban, including moves into SMEs, agriculture and industrial sectors. Urban Compliance Push: Kuwait Municipality began electronic monitoring of encroachments on state land across all governorates under its anti-encroachment campaign. Gaming & Youth Tech: Kuwait Esports Club launched the Kuwait Game Development Championship with Kuwait University, offering cash prizes up to KD 3,000.