AGP Executive Report

Kuwait Security & Airspace: Kuwait’s air defences engaged “hostile aerial targets” after Iran said it struck U.S.-linked sites, as sirens and alerts also spread across Bahrain and Jordan. US-Iran Escalation: The flare-up followed a U.S. Apache helicopter crash near the Strait of Hormuz that Washington blamed on Tehran; CENTCOM said its “self-defense” strikes against Iranian air defence and radar sites have ended, while Iran vowed “leave no attack or threat unanswered” and claimed further attacks. Regional Fallout: Jordan reported intercepting five Iranian missiles with no casualties, while Iran’s IRGC claimed strikes including on Kuwait and Bahrain and targeting U.S. Fifth Fleet-linked assets. Local Impact: The renewed fighting keeps pressure on Kuwait’s emergency readiness and highlights how quickly Gulf airspace can tighten. Sports: In handball, Al Najma face Sharjah in a must-win Asian Club League clash in Kuwait, with both sides chasing early points. Domestic Labour Policy: Kuwait updated rules restricting domestic worker recruitment to 10 approved countries and banning hiring from 27 others, including Kenya.

West Asia Diplomacy: Iran floated a four-stage deal with the U.S. as clashes intensified around Kuwait International Airport, where a terminal was hit and one person died while 63 were injured; the Gulf Cooperation Council condemned the strikes as a dangerous escalation. Kuwait–India Ties: Kuwait’s Amir spoke by phone with India’s PM Modi, condoling an Indian national’s death in the airport attack and urging de-escalation; Modi also reiterated India’s condemnation of attacks on Kuwait’s sovereignty and thanked Kuwait for protecting the Indian community. Airport Security & Claims: Iran’s foreign ministry alleged the U.S. staged a false-flag drone attack to justify a counter-drone sale to Kuwait, while Kuwait and regional partners continue to trade accusations over what caused the damage. Public Safety & Crime: Kuwait arrested two suspects in a drug money-laundering case using mobile recharge cards to disguise cash flows. Health Oversight: The Ministry of Health issued citations against salons and health institutes after inspections focused on infection control and sterilization compliance. Sports & Youth: Kuwait signed a deal with England’s Salisbury FC to run trials for three Kuwaiti footballers in England, and handball officials praised Kuwaiti referees and women’s growing role in the sport. Oil & Trade: Kuwait Petroleum Corp offered crude to Asian refiners for the first time since the Iran war began, signaling some reopening of Hormuz-linked flows.

Kuwait–Oman Diplomacy: Kuwait and Oman stressed coordination, consultations, and dialogue to tackle regional challenges during the 11th session of their joint committee in Oman. Cybersecurity Pact: Kuwait and Oman also signed a strategic MoU to strengthen cybersecurity cooperation, including expertise sharing, joint training, and better coordination against cyberattacks. US–Iran Tensions Spill Over: The Strait of Hormuz remains a flashpoint as a U.S. Apache helicopter crash near the area led to pilot rescues, while Trump said a ceasefire deal could be reached in “two or three days.” Local Compliance Push: Kuwait’s Communications and Information Technology regulator gave a three-month grace period for surrendering unlicensed wireless devices, and the Municipality launched inspections to clamp down on illegal ads and licensing violations. Economy & Business: Global IME Bank and Bhat-Bhateni announced a 0% installment credit card facility, and Kuwait’s PAI shut down 51 industrial plots for legal breaches. Sports & Community: Najma suffered a second straight defeat in Kuwait’s Asian handball club league, while Kuwait marked World Oceans Day with coastal cleanups by the Kuwait Dive Team.

Domestic Labor Rules: Kuwait’s Interior Ministry issued a new circular on domestic worker recruitment, allowing hiring from 10 countries and banning recruitment from 27 others, with processing through governorate service centers. Municipal Crackdown on Ads: Kuwait Municipality launched field inspections across all six governorates to check health licenses and remove illegal commercial advertisements, starting with Farwaniya where violations and warnings were issued. Education Costs: Indian-curriculum schools in Kuwait began circulating 2026/2027 tuition changes after a May directive, letting some schools raise fees up to 15% or 10% depending on current price bands. Local Governance Talks: Kuwait’s six governors met Arab Towns Organization Secretary-General Bader Al-Askar to boost cooperation on public services, urban planning, and sustainable development. Kuwait–China Projects: Public Works and Municipal/Housing ministers met China’s ambassador to review joint development work, including the Kabd North wastewater plant and workers’ city plans. Health Leadership: Dr. Jasim Alabbad was appointed Director General of Dasman Diabetes Institute, bringing senior surgery and academic experience. Business & Markets: Boursa Kuwait joined HSBC’s GCC Exchanges Conference in London for its 17th Corporate Day, aiming to attract global investors. Sports: Kuwait Club lost 34-31 to Al-Khaleej in Asian men’s club handball, while Kuwait’s basketball federation appointed Falah Al-Ajmi to its board. Digital Infrastructure: Zain partnered with URC to power connectivity and smart solutions for Hessah District.

Kuwait’s ICAO pushback: Kuwait has filed a second formal protest to ICAO over Iranian airspace violations and attacks on Kuwait International Airport, warning the breaches endanger passenger safety and airport operations. Airport restart: Kuwait International Airport is open again with a phased return of flights after Terminal 1 repairs, though full capacity is still not back to normal. Defense and deterrence: The wider Gulf security picture remains tense as Iran and the US trade strikes and missiles are intercepted near Kuwait and Bahrain, keeping markets and travel on edge. Energy and prices: Oil jumped after Iran and Israel exchanged fire, with Brent rising above $97 as Strait of Hormuz disruption fears returned. Finance and sustainability: NBK launched a new Sustainable Financing Framework, and Boursa Kuwait renewed its climate action push. Local business and projects: KNPC issued a limited tender for 2027 seawater pipeline repair and replacement works. Sports: Al Kuwait held off Al Najma to win the Asian Club League handball match 30-26.

Gulf Security: Iran fired ballistic missiles and drones toward Bahrain and Kuwait early Saturday, with Bahrain saying they were intercepted; the exchange followed U.S. strikes on Iranian surveillance facilities near Qeshm and Sirik, as Washington weighs using frozen Iranian assets for Gulf reconstruction. Kuwait Aviation: Kuwait’s civil aviation authority filed a second protest to ICAO over alleged Iranian airspace violations and attacks on Kuwait International Airport, citing deaths, serious injuries, and major damage to Terminal 1. Regional Diplomacy: Pakistan’s interior minister Mohsin Naqvi arrived in Tehran to push de-escalation and revive U.S.-Iran talks, delivering a “special letter” to Iran’s supreme leader. Energy Watch: OPEC+ agreed to raise July quotas by 188,000 bpd despite the Strait of Hormuz remaining closed, a move analysts say is mostly symbolic while shipping constraints persist. Local Economy & Society: Boursa Kuwait renewed its climate-action push on World Environment Day, while Kuwait’s food safety authority marked World Food Safety Day with a focus on safer food everywhere.

US-Iran Gulf Fallout: The US is weighing a major move to redirect frozen Iranian assets to help Gulf allies rebuild and repair damage from Iran-linked attacks, with Treasury Secretary Scott Bessent’s team assessing costs already inflicted on partners like Kuwait and Bahrain and checking legal routes for future destruction. Ceasefire Under Strain: The proposal lands as the US and Iran trade strikes again, including US action against Iranian coastal radar sites near the Strait of Hormuz and Iran firing ballistic missiles and drones toward Kuwait and Bahrain, which both condemned as dangerous escalation. Regional Security & Shipping: With Hormuz disruptions still a risk, analysts warn trade and energy turmoil could worsen if closures drag on. Kuwait Business Watch: Boursa Kuwait released its fifth standalone Sustainability Report for 2025, highlighting ongoing ESG reporting and governance efforts. Sports (Kuwait): Asian Men’s Club Handball action continues in Kuwait, with Najma starting their campaign against Kuwait Sports Club.

Gulf Security: Kuwait said it intercepted seven hostile ballistic missiles and multiple drones early Saturday, causing material damage but no casualties; airspace was temporarily closed from 4:15am to 6:15am and 11 flights were diverted before operations resumed. Diplomacy & Condemnations: Kuwait’s Foreign Ministry called the attacks a “flagrant violation” of sovereignty and UN norms, while Bahrain, Saudi Arabia, Qatar, the UAE and the GCC echoed strong condemnation and warned of dangerous escalation. US-Iran Tensions: Iran’s foreign ministry accused the US of ceasefire violations after US strikes on coastal radar/surveillance sites near Qeshm and Sirik; the US said it intercepted missiles/drones aimed toward Kuwait and Bahrain and struck radar targets. Defense Deal: The US State Department approved a potential $1.98bn counter-drone sale to Kuwait, including Roadrunner/Anvil interceptors and surveillance and training support. Digital Government: CAIT submitted a KD9.992m contract for auditing a plan to cut paper transactions within three years, and Kuwait launched an e-service on Sahel for domestic worker and driver visas. Markets & Business: Boursa Kuwait published its fifth Sustainability Report for 2025, while investors’ total KSE purchases hit about KD6.466bn ($19.8bn) in Jan-May 2026.

Gulf Security Escalation: The US says it shot down four Iranian drones near the Strait of Hormuz and struck Iranian coastal radar sites on Qeshm Island and in Goruk, then Iran fired seven ballistic missiles toward Kuwait and Bahrain—six intercepted, one missed—prompting air raid alerts and interceptions in both countries. IRGC Retaliation Claims: Iran’s IRGC says it targeted US-linked bases, including Kuwait’s Ali Al Salem air base and Bahrain’s Fifth Fleet facilities, warning of wider consequences if the Strait of Hormuz is disrupted. Kuwait Defense & Court Case: Kuwait’s military says it is confronting hostile missile and drone attacks, while a Kuwaiti appeals court upheld a three-year jail term for a state TV presenter, Zainab Dashti, over social media posts supporting Iran. US-Kuwait Arms Deal: The US approved a $1.98bn sale of counter-drone systems to Kuwait, including Anduril platforms, as regional security concerns grow. Regional Reaction: Bahrain condemned Iran’s “blatant aggression,” calling it a violation of sovereignty.

Kuwait–Iran Security: Iran reaffirmed support for Hezbollah and said any US peace deal must include a Lebanon ceasefire plus Israeli withdrawal from southern Lebanon, as Hezbollah rejected a US-brokered truce and strikes continued—keeping the wider US-Iran talks in doubt. Kuwait Airport Fallout: The US State Department’s Marco Rubio met Kuwait’s FM and condemned Iran’s “heinous” attacks on Kuwait International Airport, where one person died and dozens were injured; Iran disputes responsibility, blaming a US Patriot malfunction, while CENTCOM rejects that claim. Travel Advisories: The US Embassy in Jerusalem issued a security alert urging Americans to reconsider travel to Kuwait and much of the region due to “high tensions.” Energy Watch: Oil prices slipped as diplomatic hopes grew, but the standoff remains unresolved and Strait of Hormuz risks continue to weigh on markets. Local Life/Travel Disruption: Etihad suspended Abu Dhabi–Kuwait flights until June 15 amid ongoing airport operational challenges. Crime Update: Kuwait’s Interior Ministry arrested a Bangladeshi drug suspect after a raid that seized heroin, hashish, cannabis and psychotropic pills.

Kuwait-U.S. Diplomacy: US Secretary of State Marco Rubio met Kuwait’s foreign minister in Washington, reaffirming America’s commitment to Kuwait’s security and condemning Iran’s attacks on Kuwait International Airport that killed an Indian national and injured dozens. Airport Fallout: Kuwait released footage and officials said Terminal 1 was badly damaged, flights were disrupted, and Kuwait expelled two Iranian diplomats while Iran’s IRGC denied responsibility, blaming a Patriot malfunction—an account the U.S. rejected. Ceasefire Shock in Lebanon: Israel and Lebanon agreed to implement a ceasefire, but Hezbollah immediately rejected the terms and said resistance will continue, while Israel also signaled it won’t withdraw—casting fresh doubt on any broader U.S.-Iran de-escalation. War Powers Pressure: The U.S. House passed a resolution to curb Trump’s ability to continue military action against Iran without congressional approval, adding domestic pressure as strikes and counterstrikes continue. Markets & Oil: Oil prices fell on hopes of easing tensions after the Lebanon ceasefire announcement, even as the Kuwait airport attack kept regional risk elevated.

Kuwait-US diplomacy: Kuwait’s Foreign Minister Sheikh Jarrah Jaber Al-Ahmad Al-Sabah met US Secretary of State Marco Rubio in Washington, reaffirming the strategic partnership and discussing regional security, including Kuwait’s condemnation of Iran’s repeated attacks and its right to protect sovereignty. Airport attack fallout: Iran’s Revolutionary Guards denied responsibility for the deadly Kuwait International Airport strike, blaming a US Patriot systems error, while Kuwait released CCTV showing the drone impact on Terminal 1; the airport has since reopened and airlines resumed operations. Human impact: Kuwait’s Health Ministry urged blood donations after the attack that killed one and injured dozens, and Kuwait officials and the Indian embassy continued follow-up with victims and families. Ceasefire doubts in the region: Despite US-brokered ceasefire hopes, violence continued across West Asia, with Lebanon’s Hezbollah rejecting a new ceasefire and Israel saying it won’t withdraw—raising wider uncertainty for any US-Iran deal. Business & daily life: NBK launched its new “Daily Call” Account for SMEs, and Gulf Bank ran a World Environment Day workshop on recycling coffee grounds into compost. Sports & culture: Kuwait hosts the Asian Men’s Club Handball Championship, and the 57th Watch and Jewellery Middle East Show is set to open in Sharjah with Kuwaiti participation.

Kuwait Airport Under Fire: Iran-linked drone strikes hit Kuwait International Airport’s Terminal 1, killing one person and injuring dozens, with flights suspended before partial resumption as Kuwait’s PM inspected damage and officials said the terminal was heavily damaged. Dispute Over Responsibility: Iran’s IRGC denied firing at the airport, blaming a malfunctioning US Patriot interceptor, while US Central Command called the attack deliberate and “calculated,” and Kuwait rejected claims that its territory was used for attacks. Diplomatic Fallout: The incident comes as US-Iran talks show mixed signals and the UN chief urged restraint after renewed US-Iran exchanges. Regional Ceasefire Update: In parallel, Israel and Lebanon agreed to implement a conditional ceasefire with “pilot zones” under Lebanese army control, though fighting reportedly continued in Lebanon. US Politics: The US House voted to curb Trump’s war powers on Iran, a largely symbolic rebuke that still faces the Senate. Markets Watch: Oil prices hovered near $100 as Middle East risk lifted crude, while gold and silver moved with dollar swings and geopolitical uncertainty.

Airport Attack & Casualties: Iran carried out a drone strike on Kuwait International Airport’s passenger terminal, wounding dozens and killing at least one person, prompting Kuwait to suspend flights and later partially reopen operations from a different terminal. Diplomatic Fallout: Kuwait summoned Iran’s chargé d’affaires, declared two Iranian diplomats persona non grata, ordered their departure within 24 hours, and reduced embassy staff, calling the attacks a violation of sovereignty and international law. Regional Condemnation: Saudi Arabia, Oman and the UAE condemned the strikes and reaffirmed solidarity with Kuwait and Bahrain. Ceasefire Under Strain: The attack came amid renewed US-Iran exchanges, with CENTCOM saying missiles and drones were intercepted and the US carried out “self-defense” strikes after the regional escalation. Oil & Economy Watch: Kuwait’s oil and refinery recovery timelines were discussed as Hormuz disruption fears linger, while markets reacted to the renewed Gulf fighting. Public Safety Rules: Kuwait’s Interior Ministry warned against filming military or security response activity, saying a man was arrested after posting videos that could endanger national security. Youth & Business: Gulf Bank renewed its 20+ year partnership with INJAZ Kuwait, backing training and entrepreneurship for young Kuwaitis.

Gulf Security Shock: Kuwait says Iranian drones hit Kuwait International Airport’s passenger terminal, injuring people and damaging the building, prompting Kuwait Airways to suspend flights and the airport to reorganize operations while air defenses intercept incoming threats. US-Iran Escalation: The US Central Command says it “defeated” Iranian missiles and drones and carried out “self-defense” strikes on Iran’s Qeshm Island after attacks aimed at Kuwait and Bahrain; Iran’s IRGC claims it targeted US-linked sites, including the Fifth Fleet headquarters in Bahrain—claims the US denies. Oil and Markets: Oil prices climbed for a third day as Middle East hostilities flared and talks stalled, with Brent and WTI rising while investors weighed geopolitical risk against an AI-led stock rally. Trade Policy Watch: Separately, the US Trade Representative moved forward under Section 301, proposing action over forced-labor import failures, with Kuwait listed among affected economies. Diplomacy in the Background: Kuwait’s FM discussed regional developments with Pakistan’s Ishaq Dar, who was praised for mediating US-Iran engagement.

Real Estate Watch: Kuwait registered 462 real estate contracts in May worth about KD 252 million, led by private residential deals (340 contracts, KD 128.1m) and Al Ahmadi topping governorates with 220 contracts. SME Financing: The National Fund for Small and Medium Enterprises Development and CINET signed an MoU to expand credit data coverage, including government financing, to help SMEs access funding more transparently. Regional Connectivity: Kuwait’s Municipal Council approved the right-of-way and organizational plan for the Kuwait–Saudi railway link phase, starting from Al-Shadadiya and stretching 85.8 km. Power Supply Planning: The Electricity Ministry says summer demand plans are on track, with only limited impact from recent grid disruptions. Oil-Budget Pressure: A Kuwait University expert warns the war could push the budget deficit to 14–20% and calls for a supplementary 2026/2027 budget. Sports Updates: Volleyball senior competitions resume in September; Kuwait Football Association sets the 2026–27 Premier League start for Aug 25. Security: Kuwait arrested three escaped prisoners found with firearms.