AGP Executive Report

Kuwait Oil Pricing: Kuwait Petroleum Corp. has cut its July official selling price for Asia, signaling softer demand and tougher competition as global oil markets react to shifting Middle East risk. Gulf Energy Shock: The wider U.S.-Iran standoff kept oil and shipping at the center of markets, with Trump later saying strikes were called off and a deal could be signed soon—while Iran said no final decision has been made. Regional Security & Airspace: Kuwait reported airspace disruptions and precautionary closures tied to missile/drone activity in the Gulf, underscoring how quickly regional tensions can hit logistics and business continuity. AI Infrastructure Push: KKR, Kuwait Investment Authority and Vistra launched Helix Digital Infrastructure with $10bn to build AI data-center and power networks, with NVIDIA as a technology partner—another sign Kuwait is positioning itself in the AI supply chain. Banking Watch: National Bank of Kuwait warned customers about fake travel and booking websites ahead of the holiday season. Markets Mood: Stocks and gold swung on deal headlines—risk-on rallies followed strike cancellations, while precious metals stayed pressured by inflation and geopolitical uncertainty.

US-Iran De-escalation: President Donald Trump abruptly cancelled planned strikes on Iran, saying “final points” were approved at the highest level of Iranian leadership and naming Kuwait and other regional partners; he also kept a naval blockade in place until a deal is finalized, while oil prices slid sharply on the news. Oil & Markets: The threat-to-deal whiplash drove big moves in crude and raised fresh questions about how Kharg Island and Hormuz risk could hit energy flows and inflation. Kuwait in the Security Mix: Kuwait was repeatedly cited in US and Iranian messaging around the conflict, including airspace disruptions and regional missile/drone targeting claims. KUFPEC Outlook: Kuwait’s KUFPEC warned profits are set to fall in 2025, blaming lower oil prices, global oversupply, and maintenance and project work. Banking Scams: NBK urged customers to avoid fake travel booking websites as holiday-season fraud ramps up. Youth & Education: Zain Kuwait backed INJAZ Kuwait’s Company Program competition, while Gulf Bank welcomed GUST students for the summer semester with youth banking offers. Diplomacy: Kuwait’s FM led talks at the GCC-Canada strategic dialogue in Manama, with Iran-related security concerns on the agenda.

Gulf Security Shock: The US and Iran traded fresh airstrikes for a second straight day, with Washington targeting Iranian surveillance, communications and air-defense sites after Trump said Tehran would “pay the price” for stalled talks; Iran retaliated by striking US-linked assets in Bahrain, Kuwait and Jordan, while Iran also declared the Strait of Hormuz “closed” and warned any vessel would be fired on. Kuwait Operations Disrupted: Kuwait temporarily closed its airspace for several hours and later reopened it as conditions eased; Kuwait Airways said affected passengers can change or cancel without fees, and NBK temporarily shut its Kuwait International Airport T4 branch until further notice. Energy & Markets Pressure: The renewed escalation threatened global oil and LNG flows, pushing oil higher in early trading and adding to inflation and rate-hike worries. Aviation Sector Stress: Jazeera Airways’ CEO said the Iran war and jet-fuel crisis are creating an airline downturn worse than the pandemic, even as it considers new narrowbody orders. Local Business/Finance: Kuwait’s borrowing is accelerating as it nears its debt limit, with bonds issued at about 7.1bn dinars (over 23% of the 30bn ceiling) to fund projects amid lower oil revenues.

US-Iran Escalation: The US launched airstrikes on Iran after blaming Tehran for the downing of a US Army helicopter near the Strait of Hormuz, and Iran retaliated by firing missiles and drones at Bahrain and Kuwait (with Jordan also targeted), threatening a fragile two-month ceasefire. Oil & Markets: Kuwait’s crude price slipped to $101.84 per barrel, while global markets tracked renewed geopolitical risk as oil rose and investors stayed cautious. Kuwait Energy Security & Projects: PAHW moved ahead with housing-city infrastructure tenders and launched a consultancy tender for the planned Sabah Al Ahmad medical city. Kuwait Capital Markets: Boursa Kuwait stepped up fixed-income education after CMA rules opened the door for bonds and sukuk listing and trading, including a dedicated trading board. Banking Draws: NBK named Rana Al-Najjar as the KD 125,000 Al-Jawhara monthly prize winner, while Commercial Bank and Gulf Bank also announced Al-Najma and AlDanah Millionaire draw winners. Digital & Inclusion: Zain discussed Kuwait’s Vision 2035 diversification push via telecom and digital infrastructure, while Kuwait reiterated its disability-rights commitments at the UN. Security: Kuwait reported intercepting airborne threats as regional tensions intensified.

Gulf Security Shock: The US and Iran traded airstrikes after Trump blamed Tehran for the downing of a US Apache helicopter near the Strait of Hormuz, with Iran firing missiles and drones at Bahrain and Kuwait and claiming it also targeted a US-linked base in Jordan; Jordan said it intercepted five missiles while Kuwait and Bahrain activated air defences, raising fears the April ceasefire could unravel. Energy & Markets: Oil and equities reacted to the renewed escalation, with Brent hovering around the low-$90s and traders watching how quickly Hormuz flows can stabilize; analysts warned the conflict is shifting from a pure energy disruption to a broader economic risk. US-Iran Financial Pressure: The US Treasury is considering letting Gulf allies tap frozen Iranian assets to cover war damages, adding a new lever to negotiations as diplomacy struggles to turn the ceasefire into a lasting deal. Kuwait Business Angle: Kuwait’s oil infrastructure remains a key focus amid the turmoil, including a reported KD303.5m ($992m) L&T contract for export crude storage and upgrades awarded by Kuwait Oil Company. Regional Trade Risks: Shipping security also stayed tense, with reports of an armed-boat exchange of fire off Yemen, underscoring how maritime routes are being tested.

Gulf Security & Oil Flows: Iran fired ballistic missiles and drones toward Bahrain and Kuwait, with US forces intercepting and striking Iranian surveillance sites; Kuwait also lodged ICAO complaints over alleged airport attacks as regional tensions keep oil markets jumpy. KPC & Crude Exports: KPC said Kuwait crude rose to $106.24/bbl, while KPC offered first crude cargoes to Asia since the war began, signaling some reopening of Strait of Hormuz flows. Major Energy Contract: L&T won a KD303.5m ($992m) Kuwait Oil Company contract for export crude storage and upgrades. US Defense Sales: The US approved about $1.98bn in counter-drone systems to Kuwait. Local Governance & Compliance: Kuwait’s Ministry of Health issued citations against salons and health institutes over infection-control and sterilization compliance; the Education Ministry ordered a probe into tender and contract procedures. Anti–Money Laundering: Kuwait arrested suspects laundering drug proceeds using mobile phone recharge cards to disguise cash flows. Digital Services: PAHW and CIT discussed expanding the “Wasel” government platform to streamline citizen complaints and inquiries. Business & Trade Links: Kuwait’s Finance Minister met Pakistan’s ambassador on finalizing GCC–Pakistan free trade steps and investment protection; Kuwait and Kazakhstan also pushed trade and tax-avoidance talks. Sports & Telecom: PAS signed with England’s Salisbury FC for Kuwaiti player trials; stc partnered with TOD for FIFA World Cup 2026 live streaming.

Kuwait–Oman Security Talks: Kuwait and Oman stressed coordination and dialogue at the 11th session of their joint committee, focusing on regional stability and cooperation. Strait of Hormuz Shockwaves: Fresh Iran–US and Iran–Israel exchanges kept markets on edge, with shipping disruptions and rerouting affecting Gulf cargo flows and raising costs for regional trade. US–Kuwait Defence Deal: The US approved about $2bn in counter-drone systems for Kuwait, as airspace incidents and interceptions continued to dominate headlines. Kuwait Airport Recovery: Kuwait reopened airspace and worked through phased airport operations after Iranian strikes, while officials and airlines managed disruptions. Corporate Finance: Tristar (Agility) secured a $770m credit facility to refinance debt, with a planned Shariah-compliant tranche. Banking & Retail Payments: Global IME Bank partnered with Bhat-Bhateni to offer 0% installment credit cards for purchases. Real Estate Digital Push: Zain and URC teamed up to build full connectivity for Hessah District. Local Compliance Drive: Kuwait Municipality launched inspections to enforce health licensing and crack down on unauthorized ads. Education Costs: Indian schools in Kuwait raised tuition fees up to 15%, squeezing expat families’ budgets.

Kuwait’s Business & Markets: Boursa Kuwait is taking part in HSBC’s GCC Exchanges Conference in London and holding its 17th Corporate Day, aiming to deepen links with global investors amid market volatility. Capital Markets & Energy: Action Energy showcased its landmark Kuwait IPO at Arqaam Capital’s MENA Investor Conference, highlighting governance and transparency as it seeks investor confidence. Smart Cities & Telecom: Zain Kuwait and URC partnered to build the digital infrastructure for Hessah District, bringing Zain’s 5G connectivity and smart-home services to a new mixed-use development. Oil & OPEC+: OPEC+ agreed to raise July output quotas by 188,000 bpd, but analysts warn the impact may be limited while the Strait of Hormuz remains constrained. Regional Risk to Kuwait: The US Treasury is considering using frozen Iranian assets to help Gulf allies cover war-related damage, with Kuwait among the affected states. Local Economy & Regulation: Kuwait Municipality launched a field inspection campaign across governorates to check health licenses and crack down on unauthorized commercial advertisements. Education Costs: Indian-curriculum schools in Kuwait began issuing 2026/2027 tuition fee circulars, allowing up to 15% or 10% increases depending on fee bands. Infrastructure & Projects: Kuwait’s oil export infrastructure upgrade was awarded to Larsen & Toubro in a deal reported at $992m, covering crude storage and related export enhancements.

Gulf Security Shock: Iran fired ballistic missiles and drones toward Bahrain and Kuwait, with Bahrain saying they were intercepted; the flare-up came as the US weighs using frozen Iranian assets for Gulf reconstruction and Pakistan’s interior minister visited Tehran to restart Iran-US talks. Ceasefire Under Strain: Israel struck Beirut’s southern suburbs days after a Washington ceasefire took effect, while Iran warned any Lebanon escalation would trigger wider war—pushing oil and markets higher and keeping the Strait of Hormuz risk front and center. Kuwait Aviation Fallout: Kuwait submitted a second protest to ICAO over Iranian airspace violations, citing attacks on Kuwait International Airport and Terminal 1 that caused fatalities, injuries, and major losses; meanwhile, the airport reopened with Terminal 1 operating under a phased restart. Defense & Procurement: The US approved in principle a potential $1.98bn counter-drone sale to Kuwait, and Kuwait is also moving on air-defense upgrades. Energy Projects: KNPC launched a limited tender for seawater pipeline repair and replacement works for its 2027 refinery turnaround. Banking Sustainability: NBK unveiled a new Sustainable Financing Framework, including green, social, blue and sustainability instruments, after receiving an “Excellent” rating from Sustainable Fitch. Sports: Al Kuwait held off Al Najma to win the Asian Men’s Club League Championship.

Gulf Security & Energy: The Iran–US conflict hit its 100th day with fresh missile and drone exchanges involving Kuwait and Bahrain, as US forces intercepted threats toward the Strait of Hormuz and struck Iranian radar sites—keeping pressure on Kuwait’s airspace and oil-revenue outlook. US–Iran Financial Pressure: Washington is reportedly weighing a plan to redirect frozen Iranian assets to help Gulf allies, including Kuwait, pay for war damage—while Trump said he will not unfreeze assets without a deal. Kuwait Defense Procurement: Kuwait is reinforcing air defense with cost-effective counter-drone systems after repeated attacks, including the Kuwait airport incident. Oil Market Watch: OPEC+ approved another July output increase (188,000 bpd) despite Hormuz disruption risks, while analysts warn it may not translate into real supply if the chokepoint remains unstable. Capital Markets & Sustainability: Boursa Kuwait renewed its climate-action push on World Environment Day, and NBK launched a Sustainable Financing Framework rated “Excellent” by Sustainable Fitch. Local Business & Regulation: A new Kuwait decree law updates maritime establishments and floating units rules, including licensing, insurance, and safety requirements. Community: Bangladesh Press Club, Kuwait ran a blood donation drive to support local healthcare.

US-Iran Gulf Fallout: The US is weighing a major shift in how it handles frozen Iranian funds, with Treasury Secretary Scott Bessent directing an assessment of Gulf damage costs and exploring whether Iranian assets can be redirected to pay for reconstruction and repairs—both future and already incurred—amid renewed drone and missile exchanges that are again testing the fragile ceasefire. Kuwait Security & Airspace: Kuwait reported intercepting seven ballistic missiles and multiple drones over residential areas early Saturday, with debris causing material damage; airspace was briefly closed and flights diverted before reopening. Strait of Hormuz Risk: Analysts warn that a prolonged Hormuz disruption could deepen trade and energy turmoil, with OPEC+ meeting as oil supply fears persist. Market & Corporate Watch: Boursa Kuwait released its fifth standalone Sustainability Report, while Kuwait’s KNET said it is upgrading digital payments and enhancing its payment gateway security.

Kuwait–Iran Security: Kuwait said it intercepted seven hostile ballistic missiles and multiple drones over its airspace early Saturday, causing material damage but no casualties, while airspace was briefly closed and 11 flights were diverted before operations resumed. US–Kuwait Defense Deal: The US State Department approved a potential $1.98bn sale to Kuwait of advanced counter-drone systems and related equipment, aimed at strengthening detection and neutralisation of drone threats. Gulf Ceasefire Under Strain: Iran and the US traded accusations over ceasefire violations as Iran fired ballistic missiles and drones toward Bahrain and Kuwait; the US said it intercepted several and struck coastal surveillance radar sites. Digital Government Push: Kuwait’s CAIT submitted a KD9.99m contract to the State Audit Bureau for oversight of a plan to eliminate paper transactions within three years, and approved a direct contract for cloud services. Payments Modernisation: KNET rolled out a new online payment mechanism that replaces bank-selection lists with direct card-number entry to speed transactions and improve security. Capital Markets & ESG: Boursa Kuwait published its fifth standalone Sustainability Report for 2025, as Kuwaiti investors’ purchases on the Kuwait Stock Exchange reached about KD6.47bn ($19.8bn) in Jan–May 2026. Education Scholarships: Kuwait’s Higher Education Ministry wrapped up its “Wajhni” scholarship guide campaign, drawing 5,322 visitors and setting up further support during the application period.

US-Kuwait Defense Deal: The US State Department approved a $1.98bn sale to Kuwait of counter-unmanned aerial systems and related equipment, with Anduril as the principal contractor, aimed at boosting Kuwait’s electronic and kinetic defeat capabilities against drones. Regional Security Escalation: Fresh US-Iran exchanges around the Strait of Hormuz included US interception of Iranian drones and strikes on coastal radar sites, while Iran said it targeted “enemy bases” in Kuwait and Bahrain; Kuwait and Bahrain reported air-defense interceptions and explosions as sirens sounded. Energy Watch: Kuwait’s crude price slipped to $107.95/bbl, while the wider market remains sensitive to Hormuz disruption risks. Human Response: After the Kuwait airport drone attack, the Bangladesh embassy and expatriates donated blood for injured people, with 178 donors successfully screened and contributing. Business & Tech: SAP appointed Saqib Sabah to lead its MEA North Growth Cluster, covering Pakistan, Kuwait and Bahrain, as enterprise transformation efforts expand across the region.

Kuwait Airport Attack & Travel Risk: Kuwait’s main airport reopened after a fatal Iranian drone strike that killed one and injured dozens, as Iran denied responsibility and the U.S. and Iran traded blame; the U.S. Embassy in Jerusalem also issued a Level 3 “reconsider travel” alert that explicitly includes Kuwait amid “high tensions.” Oil & Markets: Kuwait crude slid about $2 to around $108 per barrel as global oil prices retreated on Friday, even as renewed fighting kept weekly gains possible; analysts flagged that any delay in a U.S.-Iran truce keeps energy costs and shipping uncertainty elevated. Ceasefire Doubts in Lebanon: Iran reaffirmed support for Hezbollah and demanded Israel withdraw from southern Lebanon, warning that any U.S. peace deal hinges on a Lebanon ceasefire—while Hezbollah rejected a proposed truce, complicating efforts to reopen the Strait of Hormuz. Regional Payments: Qatar Central Bank expanded HIMYAN card acceptance to Bahrain, following Kuwait’s earlier rollout, boosting GCC cross-border retail and ATM use. Aviation Disruption: Etihad suspended Abu Dhabi–Kuwait flights until June 15 due to continued Kuwait airport closure impacts. Manpower Exports Note: Separate coverage points to Bangladesh’s Chattogram district lagging in manpower exports, with shifting preferences and local job opportunities affecting overseas labour flows.

Kuwait-Iran Fallout: Iran-backed strikes hit Kuwait International Airport, killing 1 and injuring dozens, while the US carried out strikes near the Strait of Hormuz; Kuwait said it intercepted missiles and drones and condemned the attacks as illegal, as flights resumed after Terminal 1 damage. Ceasefire Watch: Israel and Lebanon agreed to implement a ceasefire, but Hezbollah immediately rejected the terms, throwing fresh doubt on US-brokered efforts to broaden a wider Iran-related deal; markets reacted with oil easing on hopes for Hormuz reopening. US-Iran Negotiations Under Pressure: Trump said the enriched uranium “dust” is effectively “entombed” and downplayed any US move to retrieve it, while also warning the ceasefire could end quickly if US troops are killed. Oil & Economy: KPC said Kuwait oil production could reach 70% within 6-8 weeks after Hormuz reopens, with refineries returning to full capacity in 2-3 weeks; Kuwaiti crude rose to $109.92/bbl. Local Security & Courts: Authorities arrested a Filipino suspect over an armed robbery at a currency exchange branch in Shuwaikh, stealing about KD 21,000; a court sentenced a cooperative marketing director to five years with hard labor for embezzlement. Business & Finance: Foras.AI invested in Efham.ai to launch an Arabic AI learning community targeting Kuwait and other regional markets; NBK launched a new SME-focused savings account product.

Kuwait Airport Recovery: Kuwait International Airport is back to full operations today, with Terminal 1 reopened and flights resuming as delays remain low and decreasing after damage from an Iranian drone strike that killed one and injured dozens. Regional Security & Travel: The US Embassy in Israel issued a fresh security alert to Americans across the region, keeping Kuwait on a “Reconsider Travel” list while warning of “Do Not Travel” areas elsewhere. Ceasefire Reality Check: Despite US-brokered truces, fighting continues: Israel-Lebanon ceasefire hopes rose after an agreement, but Hezbollah rejected the latest terms, demanding full Israeli withdrawal. Oil & Markets: Oil eased after the Israel-Lebanon ceasefire boosted hopes for Hormuz reopening, but traders stayed cautious as US-Iran tensions and Kuwait airport fallout kept risk premium elevated. Banking & SMEs: NBK launched its new “Daily Call” Account for SMEs, offering daily interest, no minimum balance, multi-currency savings, and a cash reward for qualifying balances. Labour Action: Kuwait’s Public Authority for Manpower moved against a fuel company in Al-Abdali over a reported work stoppage tied to delayed wage and overtime payments. Payments Integration: Qatar Central Bank expanded HIMYAN card acceptance to Bahrain, following Kuwait’s earlier rollout. Business Events: The 57th Watch & Jewellery Middle East Show is set to open in Sharjah on Wednesday, drawing regional and international exhibitors including Kuwait.