AGP Executive Report

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.

Kuwait Airport Attack: Iran’s drones hit Kuwait International Airport’s passenger terminal, killing 1 and injuring at least 63, prompting a temporary flight suspension before partial resumption; Kuwait says the strike was deliberate while the US Central Command rejects Iran’s claim that a US interceptor caused the damage. Gulf Energy Shock: The renewed US-Iran flare-up pushed Brent back toward $98-$100 and kept markets jittery, with oil volatility feeding inflation worries and risk-off trading. Ceasefire Strains: Iran’s foreign minister said talks with Washington show “no tangible progress,” while Trump suggested a deal could come “over the weekend,” even as lawmakers and regional actors warn the ceasefire remains fragile. US Politics, Iran War Powers: The US House voted to curb Trump’s Iran war powers in a bipartisan rebuke, a largely symbolic move that still signals growing domestic pushback. Trade & Sanctions Watch: The US Trade Representative advanced forced-labour import actions that could affect Kuwait among other economies, adding another layer of compliance risk for regional trade. Markets & Metals: Gold and silver traded higher on a softer dollar and geopolitical uncertainty, even as equities elsewhere swung on the latest Middle East headlines.

Kuwait Airport Under Fire: Kuwait briefly shut Kuwait International Airport after Iranian drones and missiles damaged the passenger terminal, killing one and injuring dozens; flights were suspended then later resumed as Kuwait said it intercepted 13 ballistic missiles and 17 drones. Diplomatic Fallout: Kuwait expelled two Iranian diplomats and reduced the mission size, while Bahrain reported intercepting missiles and drones targeting civilian sites. Aviation Disruption: flydubai cancelled all Kuwait flights on June 3, and Air India Express suspended Kuwait operations through June 6; Kuwait Airways and Jazeera later resumed after safety checks. Oil Recovery Timelines: KPC said Kuwait could restore nearly 70% of oil output within 6–8 weeks after Hormuz reopens, with full recovery taking longer; refinery output could return to normal in 2–3 weeks. Security & Crime: Kuwait arrested a suspect in the Shaab money exchange armed robbery, seizing about KD 21,000. Youth & Finance: Gulf Bank renewed its 20+ year partnership with INJAZ Kuwait to support youth training and entrepreneurship aligned with Kuwait Vision 2035. US Trade Pressure: The USTR proposed new Section 301 forced-labor tariffs covering Kuwait and 59 other economies, with duties likely between 10% and 12.5%. Sports Governance: Kuwait Boxing Federation approved financial and administrative reports for FY ending March 31, 2026, and set its 2026–27 work plan.

Gulf Security & Energy: Fresh US-Iran hostilities reignited risk in the region as Iran fired missiles toward Kuwait and Bahrain, with US forces striking Iran’s Qeshm Island after attacks were thwarted or failed; Kuwait reported drone/missile damage to Kuwait International Airport and activated air defences, while oil prices pushed higher toward the $97 area and markets weighed renewed Strait of Hormuz disruption. Kuwait Infrastructure & Power Projects: Kuwait’s KAPP and MEWRE opened bids for the Al Khairan Phase 1 IWPP (1,800MW power plus 125 MIGD desalination), with technical evaluation expected to take about a month; separately, Kuwait is expected to name the winning bidder for the 1.1GW Shagaya solar PV Phase III Zone 1 in Q3, with financial bids due mid-July. Trade Policy: The US USTR proposed Section 301 action and additional tariffs tied to forced-labour imports, flagging 60 economies including Kuwait, and outlined potential duties for countries that lack effective enforcement. Banking Innovation: MEBIS 2026 is building momentum ahead of its September summit in Dubai, with 400+ senior bankers already confirmed. Markets Mood: Global trading stayed split as the AI-led equity rally offset Middle East oil-driven volatility, while Kuwait-linked headlines kept risk sentiment sensitive.

SME Financing Boost: Kuwait’s National Fund for Small and Medium Enterprises Development and CINET signed an MoU to expand credit information sharing, adding government financing data to credit reports and supporting the new SME Score service to help lenders assess borrowers faster and more transparently. Public Works & Infrastructure: The Municipal Council approved the organizational plan and right-of-way for the Kuwait–Saudi Arabia railway link, a first phase toward the unified Gulf network, with an 85.8km route and 200m right-of-way in parts. Electricity Supply Planning: The Ministry of Electricity, Water and Renewable Energy said summer readiness plans are on track despite limited grid maintenance disruption linked to regional attacks, with added transmission capacity via GCC interconnection and load management measures. Oil Budget Pressure: A Kuwait University accounting expert warned the war-linked halt in oil exports could widen the 2026 deficit to 14–20%, urging a supplementary budget to reflect war impacts while protecting capital spending. Banking Digitisation: NBK launched an eSavings Account inside its mobile app, using Auto Saver, “Save the Change,” and Tap to Save to automate saving goals. Petroleum Restructuring: KIPIC will be merged into KNPC via acquisition after KNPC’s official gazette notice, with KNPC capital increased to reflect KIPIC assets. Consumer Safety Recall: Kuwait’s Commerce and Industry Ministry recalled MagWallet Card 5K and MagPac Grip 5K devices sold in 2023 due to overheating and potential fire risk. Women & Business Index: Kuwait’s Foreign Ministry met SCPD officials to discuss steps to improve women’s economic empowerment and the business environment ahead of World Bank Group indicators. Regional Trade/Markets Watch: Gulf markets stayed cautious on US-Iran ceasefire uncertainty, while MSC confirmed a containership was hit twice off Iraq, raising shipping risk concerns.

Kuwait Security & Energy Risk: Kuwait reported intercepting hostile missiles and drones as the US and Iran traded strikes, with the US saying it hit Iranian radar/drone sites after Iran shot down a US MQ-1 drone; Iran also claimed attacks on a US-linked vessel near Iraq’s coast, keeping pressure on Gulf shipping and the Strait of Hormuz. Ceasefire Talks in Flux: Trump said talks with Iran are moving “at a rapid pace” and expects a deal to reopen Hormuz “over the next week,” while Iran says it is breaking off talks after Israel’s Lebanon escalation, raising the odds of more disruption. Kuwait Business & Projects: KOC awarded the KWD 118m (about $385m) Ahmadi Innovation Valley contract to Schlumberger, aiming to build an advanced research and innovation hub for Kuwait’s oil and gas sector. Regional Markets: Bahrain’s bourse extended gains in May, while gold prices across the Gulf edged down on softer global spot moves. Corporate Results: Freedom Holding Corp. reported fiscal 2026 net income more than doubling to $153.3m and record revenue of $2.19bn. Human Rights Watch: Gulf states, including Kuwait and Bahrain, were accused of excluding migrant workers from emergency support and intensifying restrictions on war-related expression.

Kuwait Education & Skills: Kuwait’s Ministry of Higher Education launched the “Guide Me” National Overseas Scholarship Campaign at The Avenues Mall, urging students to plan study paths aligned with their abilities and the local labor market, with guidance on approved specializations and application rules. Municipal Regulation & Services: Kuwait’s Municipal Council approved measures including a new site for the Kuwait Fund for Arab Economic Development, accessibility monitoring for people with disabilities, clearer standards for electronic ads, and a dedicated access plan for the Al-Khuwaisat freshwater project, while pushing for more digital procedures. Banking Sustainability: Gulf Bank completed its first GHG emissions inventory, setting 2025 as its baseline year across headquarters, branches, affiliated assets and its investment arm, in line with the GHG Protocol. Retail-Banking Partnership: NBK and Alshaya’s Aura loyalty program won “Best Strategic Partnership in Global Loyalty,” highlighting cross-sector rewards and customer experience. Wealth Management Focus: NBK Wealth outlined its “Beyond Wealth” strategy, positioning wealth as an ecosystem supported by long-term client relationships and career development. Middle East Risk to Energy & Trade: US-Iran ceasefire talks appear strained as Iran reportedly halts indirect negotiations over Lebanon, while Kuwait reports missile/drone intercepts and the US says it struck Iranian radar/drone sites; oil prices jumped and shipping risks rose after attacks near Iraq and threats to Strait of Hormuz transit.

Kuwait Energy Restructuring: Kuwait approved the merger of KIPIC into KNPC, with KNPC absorbing KIPIC’s rights and assets and raising its capital to about KD 2.632 billion, while minority shareholders are set for compensation based on an approved valuation. Regional Security & Markets: The US and Iran traded strikes again as ceasefire talks stayed fragile; Kuwait reported intercepting missile and drone attacks as sirens sounded, while oil prices climbed more than 2% on renewed West Asia risk. Aviation & Travel: Jazeera Airways relaunched direct flights between Kuwait and Budapest starting July 16, operating three times weekly as part of its expanding European network. Retail Expansion: Korea Town by Boutiqaat opened its eighth store at The Avenues, adding to its push to grow K-beauty brands across the GCC.

KIPIC Restructuring: Kuwait’s official gazette says the Supreme Petroleum Council approved dissolving Kuwait Integrated Petroleum Industries Company (KIPIC) and merging it into Kuwait National Petroleum Company (KNPC) by absorption, with KNPC taking over all rights and obligations; the move also includes capital adjustments and updates to KNPC’s objectives to match KIPIC’s petroleum, gas, refining and petrochemical scope. Banking & Sustainability: Kuwait Finance House (KFH) published its 2025 Sustainability Report, citing a 3.09% year-on-year cut in total emissions to 42,726.2 tons CO2e, plus KD 376m in sustainable/green sukuk investments and LEED Gold certification for four more branches. Oil, Markets & Inflation Watch: Global central banks stayed cautious as energy-driven inflation persists, with the US PCE inflation gauge still showing elevated pressures, keeping rate expectations tight. Kuwait Labour Rules: Kuwait’s Ministry of Interior urged employers to follow the Public Authority for Manpower ban on outdoor work from 11am-4pm (June 1-August 31, 2026) and a delivery-bike operating ban during the same hours, warning of penalties for violations. Trade Deal in the Gulf: India and Oman’s CEPA takes effect June 1, expanding duty-free access and boosting trade and services, with the pact expected to strengthen India’s Gulf footprint. Regional Risk to Watch: With US-Iran tensions and Strait of Hormuz disruptions in focus, Kuwait reiterated it faces missile/drone threats and called for Iran to halt aggressive attacks, underscoring the spillover risk for regional commerce.

Kuwait-US Security: An Iranian Fateh-110 ballistic missile strike hit Ali Al Salem Air Base in Kuwait after interception, injuring about five Americans and damaging or destroying MQ-9 Reaper drones, as Kuwait condemned the “flagrant” violation of sovereignty. Ceasefire Talks Under Strain: The attack landed amid ongoing US-Iran negotiations over a 60-day ceasefire extension and nuclear talks, with Washington saying Trump will make a “final determination” while Iran insists it will trust actions, not words. Hormuz Control Clash: Iran is moving to formalize its authority over Hormuz shipping routes, challenging US conditions tied to reopening the strait and removing mines/tolls. Energy Market Watch: Major oil firms warn of sharp crude price hikes as Hormuz risk tightens supply and inventories fall, while gold prices across the Gulf rose on safe-haven demand. Regional Finance Angle: Foreign exchange reserves in Pakistan rose to $22.65bn, including inflows from Gulf partners such as Kuwait, highlighting how regional support is reshaping trade and liquidity.

US-Iran Ceasefire Watch: A tentative 60-day deal to extend the truce and restart nuclear talks is on the table, but President Trump’s final sign-off is still pending, with Iran warning it trusts actions not words as Kuwait reports missile/drone interceptions tied to the fragile ceasefire. Gulf Security & Kuwait: Kuwait’s air defences intercepted hostile threats aimed at its airspace amid renewed US-Iran tensions, underscoring how quickly the region’s energy corridor can swing back into risk. Strait of Hormuz Trade Terms: The draft framework reportedly includes reopening Hormuz for unrestricted shipping, Iran clearing mines within 30 days, and the US lifting its naval blockade—key for oil flows and regional business planning. Markets & Energy: Optimism around the possible truce extension lifted Asian stocks while oil prices eased, as traders weigh whether shipping disruption fears truly fade. Gold in Kuwait: Gold prices across the Gulf rose on safe-haven demand; Kuwait’s 24K was quoted at 45.48 KWD per gram and 22K at 41.70 KWD. Islamic Finance Spotlight: Malaysia was ranked top in the world’s Islamic economy rankings again, a reminder of where regional capital and halal trade ecosystems are concentrating.