AGP Executive Report

US-Iran Escalation: The US resumed a “heavy wave” of strikes on Iran after an attempted ballistic missile attack on US forces in Jordan, with CENTCOM saying it hit dozens of IRGC command, missile/drone, coastal and maritime targets. Jordan Air Shield: Jordan reported intercepting and destroying five Iranian missiles, with no casualties, as the regional flare-up threatens to widen. Saudi Joins the Fight: Saudi Arabia publicly coordinated strikes with the US against Iran-backed militias in Iraq, killing at least 20 fighters, while Gulf states voiced full support for Riyadh’s security actions. Diplomacy Stalls: Iran’s deputy foreign minister said Tehran has not requested talks for over two weeks, despite Trump’s earlier “good chance” comments. Trade Pressure: With Strait of Hormuz shipping disruptions and oil-price swings, the conflict is again raising costs for energy and basics across the region.

Middle East Security & Energy: Iran’s “surprise” missile attack on a US base in Jordan triggered a new escalation, with Jordan intercepting and destroying five missiles as the US and Saudi Arabia launched coordinated strikes on Iran-backed militias in Iraq, killing at least 20; Oil & Shipping Impact: a reported drone strike on a US-owned LNG tanker at Egypt’s Damietta port sparked fires and pushed global oil prices above $90, while fears of wider disruption to regional shipping lanes grew; Jordan Trade Logistics: Jordan’s Transport and Labor ministries met logistics and customs stakeholders to speed cargo flow through Aqaba Port and border crossings, including faster clearance and reduced vessel/container delays; Industrial Policy: Jordan’s Ministry of Industry said progress continues on Industrial Policy 2024–2028 projects, including energy-efficiency work in industrial facilities; Markets Watch: the Fed held rates for a fifth straight meeting amid an internal split, while geopolitics and the oil jump rattled equities ahead of major earnings.

Regional Security: Jordan reported intercepting and destroying five Iranian missiles early Wednesday, after the U.S. said it had knocked down an Iranian barrage aimed at American forces in the region, with Iran also claiming strikes on U.S. sites in Jordan. Iraq Escalation: The U.S. and Saudi Arabia carried out coordinated airstrikes in eastern Iraq against Iran-backed militia logistics and weapons sites, citing more than 30 drone attacks on Saudi oil facilities in 72 hours. Hormuz Talks: Oman proposed a Gulf-backed plan for joint management of the Strait of Hormuz with voluntary ship fees, but Iran rejected the idea, insisting inbound and part of outbound control must remain under Iranian authority. Energy Markets: Oil prices jumped again on renewed Middle East tensions, with Brent rising around 3–4% amid fears that shipping disruptions could return. Diplomacy Watch: Pakistan urged the UN Security Council to fully implement the Gaza ceasefire and peace framework, warning that delays could derail prospects for an independent Palestinian state.

Regional Security: Kuwait’s foreign ministry condemned repeated drone attacks on Jordan as a breach of sovereignty, while GCC foreign ministers coordinated to reduce tensions and protect navigation through the Strait of Hormuz. Diplomacy & Deterrence: Gulf states also pushed tighter military cooperation and contingency planning after fresh strikes on oil infrastructure, with Oman reportedly advancing a joint management idea for Hormuz. Jordan-US-Iran Fallout: Jordan’s army said it shot down a drone that entered its airspace amid the wider US-Iran standoff, as Israel’s defense minister claimed US warplanes were taking off from Israel to hit Iran. Digital Economy: Jordan jumped to 71% in the UN ESCWA digital government maturity index for 2025, and the Central Bank selected BIO-key for a national biometric authentication platform for financial services. Trade & Industry: The US exempted Jordanian apparel and textiles from customs duties, boosting competitiveness for a sector that topped JD431m in exports to the US in early 2026. Real Estate Law: The Lower House is set to debate amendments to the Real Estate Ownership Law, including full digitalization of property procedures and faster resolution of co-ownership disputes.

Real Estate Reform: Jordan’s Lower House will debate amended Real Estate Ownership Law aimed at boosting investment, digitizing property procedures end-to-end, speeding up joint-property division (3/4 approval instead of unanimity), and enabling pre-construction subdivision based on approved plans. Banking Cybersecurity: The Central Bank of Jordan is working with BIO-key on a national biometric authentication initiative to modernize how clients verify across the financial sector, reducing reliance on passwords and tokens. Water Infrastructure Finance: Cabinet approved a $97m financing agreement with the French Development Agency to support Jordan’s National Water Carrier Project, a $5.8bn mega plan tied to desalination and renewable-powered pumping. Trade & Tariffs Watch: New U.S. Section 301 forced-labor tariffs took effect July 24, with Jordan listed among covered economies—important for exporters planning supply chains and pricing. Regional Energy Security: Despite a U.S.-Iran pause, Jordan and Saudi reported drone threats tied to Iran-linked actors, keeping pressure on regional logistics and energy routes. Aqaba Industry & Investment: Jordan’s push for industrial growth continues, including moves tied to natural gas infrastructure and broader economic cooperation efforts.

Water Security Deal: Jordan’s Cabinet approved a $97m financing agreement with the French Development Agency to help complete the National Water Carrier Project, a roughly $5.8bn mega build aimed at desalinating 300m cu m of seawater annually and delivering water via a 450km pipeline network. Industrial Exports Momentum: Jordan’s industrial exports rose 8.2% in the first five months of 2026 to JD 3.668bn, with gains across Europe and Asia and notable jumps to Switzerland, China, the Netherlands and Belgium. Transport & Congestion Plan: Government teams advanced studies for an electronic “Park and Ride” system with about 1,000 spaces along Jordan Street and Airport Road, designed to link with Bus Rapid Transit corridors and ease inter-governorate travel. Aqaba Energy & Infrastructure: The Jordanian PM inaugurated two natural gas stations in Aqaba, while Jordan also reported intercepting drones targeting the Kingdom. Regional Security Pressure: Amid a US-Iran strike pause, Jordan and Saudi Arabia reported drone attacks and interceptions tied to Iran-backed groups, keeping energy and logistics risk high. Private Sector Modernisation: Ecorys and local firm Manafeth were selected to support Jordan’s Economic Modernisation Vision under GIZ’s I-PSD project, targeting export growth, industrial acceleration and digital transformation for SMEs. Creative Industries Boost: Zain Jordan renewed its strategic partnership with the Amman International Film Festival—Awal Film for a seventh year, backing Jordan’s film sector as a jobs and revenue driver.

Jordan-US Trade: Jordan’s Reciprocal Trade Agreement with the United States locks in tariffs of no more than 10% for most exports, while textiles and garments keep zero customs duties, with the sector already exceeding JD 431m in exports to the US in the first four months of 2026. Aqaba Energy & Industry: Prime Minister Jaafar Hassan’s Aqaba push highlighted a natural gas station inauguration and the onshore regasification unit foundation stone, reinforcing the city’s role in water, energy, transport and rail amid renewed regional security concerns. Remittances Boost: Central Bank data shows remittances rose 15% in the first five months of 2026 to $2.06bn, led by the UAE, US and Saudi—supporting liquidity and consumption. Manufacturing Exports: Jordan’s industrial exports grew 8.2% in the first five months of 2026, with gains across potash, fertilizers, metals, chemicals and cement. Grain Supply: Jordan received about 110,000 tonnes of locally produced wheat and barley so far, with total deliveries expected at 130,000–140,000 tonnes, strengthening reserves. Regional Shipping Risk: Oil prices slid as US-Iran hostilities paused, but Red Sea and Strait of Hormuz threats keep energy and logistics uncertainty high.

Jordan Exports Boost: Jordan’s industrial exports rose 8.2% in the first five months of 2026, with gains across markets like Switzerland, China, the Netherlands and Belgium, and key products including potash, fertilisers, iron and steel, chemicals, copper, aluminium and cement. Garments Get US Duty-Free Push: The Industry Ministry says Jordanian garment and knitted apparel exports to the U.S. will be fully exempt from customs duties under a reciprocal trade deal, with the U.S. cutting reciprocal tariffs on other Jordanian goods to 10%. Agriculture Output Strengthens: Jordan’s local grain harvest hit about 110,000 tonnes of wheat and barley received so far, with total deliveries expected at 130,000–140,000 tonnes; separately, agricultural exports grew 14% in Jan–Jun 2026, led by vegetables, fruits and big jumps in potato, watermelon and egg exports. Industrial Estates Cooperation: Jordan Industrial Estates Corporation signed a twinning agreement with Morocco’s MedZ to share know-how on industrial cities, investment attraction and logistics services. Trade Diplomacy: Amman and West London chambers signed an MoU to deepen UK-Jordan business links and support partnerships and joint ventures. Regional Risk to Business: Jordan condemned Houthi attacks on a Saudi vessel in the Red Sea and backed measures to protect maritime navigation, as shipping and tourism face renewed security concerns.

Trade & Textiles: Industry Minister Yarub Qudah says Jordanian garment and textile exports to the U.S. are fully exempt from customs duties under the new reciprocal trade deal signed in Washington, with apparel and knitted products getting zero tariffs while other goods face a 10% rate—expected to lift exports (sector already above JD 431m in the first four months). Energy for Industry: Prime Minister Jaafar Hassan inaugurated natural gas stations in Aqaba (Al-Quweira Industrial City and the Southern Industrial Zone) to cut industrial energy costs by 35–60%, with the first station starting at 30,000 cubic meters/day and expandable. Industrial Investment: Arab Potash and Jordan Phosphate Mines are moving toward a major new industrial complex (near $1bn), signaling a shift from competing in global markets to building higher-value local production. Agriculture & Food Security: Jordan’s local grain harvest hit a 15-year high, with about 110,000 tonnes of wheat and barley received so far and deliveries expected to reach 130,000–140,000 tonnes. Industrial Estates Cooperation: Jordan Industrial Estates Corporation signed a twinning agreement with Morocco’s MedZ to share know-how on industrial and logistics zones, investment attraction, and digital transformation. Maritime & Tourism Potential: Jordan’s Aqaba Marine Reserve was listed by UNESCO, boosting the Kingdom’s climate-resilient reef brand and marine tourism appeal.

Garment Exports Boost: Jordan’s Minister of Industry, Trade and Supply Yarub Qudah says Jordanian garments and knitted apparel entering the U.S. will get full customs-duty exemption (zero tariff) under the reciprocal trade deal signed in Washington, while the U.S. cuts reciprocal tariffs on other Jordanian goods to 10%—a move expected to lift exports that already topped JD 431 million in the first four months of 2026. FDI Momentum: Foreign direct investment into Jordan jumped 25% over the past year, with the ministry citing stronger corporate registrations and Jordan’s role as a regional service and logistics hub, including rising freight volumes at the Jaber border crossing. Industrial Estates Cooperation: Jordan Industrial Estates Corporation (JIEC) signed a twinning agreement with Morocco’s MedZ (CDG Group) to share know-how on industrial cities, investor services, logistics, and digital transformation. Agriculture Results: Jordan’s local grain harvest hit about 110,000 tonnes received so far, the biggest in nearly 15 years, as officials point to favorable rainfall and plans to keep strategic reserves strong. Energy Costs Pressure: Heat waves are pushing up electricity bills as households shift between fans and air conditioning, often landing in higher tariff brackets. Trade Links with UK: Amman and West London chambers of commerce signed an MoU to deepen economic cooperation and create more direct partnerships between businesses. Regional Security Watch: Jordan condemned Houthi attacks on a Saudi vessel and reiterated solidarity with Riyadh, as maritime tensions keep affecting the wider region.

Middle East Security & Energy: Jordan says its air defences and Royal Jordanian Air Force intercepted 7 Iranian missiles and 6 drones aimed at the Kingdom, with no casualties or damage reported. Regional Shipping Risk: Iran-backed Houthis renewed attacks on Saudi shipping, claiming missile strikes and a maritime blockade tied to the wider Red Sea escalation—raising fresh pressure on trade routes and energy costs. Trade Policy Shock for Jordanian Firms: The U.S. rolled out forced-labour Section 301 tariffs on 60 economies; Jordan is listed in the 10% bracket, adding cost risk for exporters and importers. Jordan’s Labour Market Debate: A Jordanian economist argues the core problem isn’t unemployment numbers but weak labour demand, calling for policies that unlock investment and productivity-driven job creation. Infrastructure in the Gulf (Business Angle): Bahrain inaugurated the first phase of the North Isa Town Interchange flyover to ease congestion on Shaikh Salman Highway, supporting regional connectivity and logistics. Steel Demand Signal: World crude steel output rose 1.7% in June, but the Middle East saw a 13.4% drop—an uneven regional production picture.

Middle East Security: Jordan’s air defences and Royal Jordanian Air Force intercepted and shot down seven Iranian missiles and six drones targeting the Kingdom, with no casualties reported and engineering teams securing debris sites. Aqaba & Tourism Impact: Jordan’s economic hopes, especially around Aqaba and the port’s role as an alternative route, are being tested as the Iran war spills into regional shipping and raises uncertainty for investment. Red Sea Shipping Risk: The conflict is widening beyond Hormuz, with Houthis declaring a naval blockade and attacking Saudi tankers near Bab el-Mandeb, pushing oil prices above $100 and threatening energy and logistics flows. US Tariffs on Forced Labour: The Trump administration launched sweeping Section 301 tariffs on 60 economies over forced-labour enforcement, with rates of 10% for countries meeting requirements and up to 12.5% for others; Jordan is listed among the 10% tier. Local Business Link: A Jordan-UK Business Forum highlighted private-sector expansion in export-ready sectors like food production, engineering, manufacturing, and digital services—timely as trade rules tighten.

US Forced-Labour Tariffs: The Trump administration is rolling out Section 301 duties on 60 trading partners over forced-labour import bans, with rates at 10% or 12.5% (and some products exempt). The move hits major supply chains, including textile and apparel sourcing, and takes effect as the temporary 10% global tariff expires. Gulf Aviation Warning: Europe’s aviation safety body extended a Gulf airspace warning and issued a fresh bulletin for Jordan, urging airlines to avoid Jordan’s airspace until Aug. 31 due to rising missile/drone activity. Iran-US Escalation, Shipping Stress: The US carried out a 13th night of strikes on Iran as Houthis attacked Saudi tankers in the Red Sea, raising fears of new chokepoints and pushing oil prices above $100. Regional Stance: GCC states and Jordan reiterated support for self-defense and condemned continued Iranian attacks on civilian infrastructure, including energy and ports.

Middle East Energy Shock: Houthis said they attacked two Saudi oil tankers in the Red Sea, raising the risk of a new shipping chokepoint as Brent crude surged back above $100 a barrel. US-Iran Escalation: President Trump warned of “major military punishment” and told Axios he is “close” to a “massive attack” on Iran, while the US carried out a 12th straight night of strikes. Regional Solidarity: GCC states and Jordan jointly condemned Iran’s attacks and reaffirmed the right to self-defence, citing strikes on energy, desalination, ports and airports. Jordan Security Signal: Jordan reported intercepting Iranian missiles and drones amid renewed regional missile activity near Aqaba and Eilat. Trade & Investment Push: King Abdullah met UK business leaders and opened the Jordan-UK Business Forum, highlighting cooperation in automotive, mining, energy, engineering, chemicals, pharma, and apparel/textiles. Nuclear Deal Politics: Trump said the US-Saudi civilian nuclear cooperation deal is “totally subject” to Saudi joining the Abraham Accords, adding uncertainty for regional energy and investment planning.

Red Sea Energy Shock: Houthis claimed they struck two Saudi oil tankers (Encelia and Layla) and warned of a naval blockade, raising fresh Red Sea chokepoint fears as Brent jumped toward $98. US-Iran Escalation: The US carried out a 12th straight night of strikes on Iranian military sites, while Trump vowed to destroy “one bridge or power plant” for every ship attack in the Strait of Hormuz. Jordan Air Security: Jordan’s air defences intercepted four Iranian missiles and six drones over the past 24 hours, with no casualties reported; engineering teams secured debris sites. Regional Retaliation Claims: Iran’s IRGC defended strikes on US bases in Kuwait and Jordan, saying it was targeting American forces. Business & Trade Link: Damascus Chamber of Commerce welcomed Jordan’s expanded entry facilitations for Syrian investors, aiming to boost movement and investment activity. Diplomatic Fallout: The UK withdrew remaining staff from Iran and kept its travel warning in place as tensions keep widening.

Jordan-US Trade: Jordan and the U.S. signed a reciprocal trade agreement in Washington, capping reciprocal tariffs on Jordanian imports to 10% and boosting preferential access for Jordan’s textile and apparel exports, while Jordan commits to removing non-tariff barriers. Aqaba Air Security: Jordan’s air defences intercepted Iranian missile threats over the kingdom, with four missiles shot down and two falling in remote areas, while engineering teams secured crash sites. Regional Energy Shock: Trump warned the U.S. will destroy a bridge or power plant for every Iranian attack on shipping in the Strait of Hormuz, as Iran vowed “eye for an eye” retaliation and oil prices pushed higher on shipping risks. Defense Fallout in Jordan: Iran’s IRGC claimed strikes on U.S. bases in Jordan, targeting air assets and troop accommodation, as the wider conflict continues to raise costs and uncertainty for regional logistics. Royal & Youth Focus: The Prime Minister opened Jerash’s 40th Culture and Arts Festival, while the Crown Prince met Karak youth, stressing skills, tourism projects, and energy cooperation. Business & Finance: LGIS relaunched with a commercial real estate credit-risk insurance product aimed at helping lenders manage foreclosure losses and improve balance-sheet flexibility.