Assets held by Islamic banks and Islamic banking windows in Oman increased 10.5% year on year to 10.1 billion Omani rials ($26.2 billion) in July, according to data from the Central Bank of Oman.

The central bank’s monthly statistical bulletin showed that Islamic banking entities provided 8 billion rials in financing by the end of July, an increase of 10.9% compared with the same month last year. Deposits held by Islamic banks and windows also rose 10.3% to 8 billion rials.

The growth comes as Islamic banks across the Gulf Cooperation Council are expected to continue expanding at a faster pace than conventional lenders. Moody’s Ratings has said demand for Shariah-compliant financing and greater public-sector exposure across retail and corporate portfolios are supporting the sector.

The wider Omani banking sector also recorded strong credit growth during the period. Total credit extended by other depository corporations, which include conventional and Islamic banks, increased 12.2% to 38.3 billion rials.

Credit to the private sector rose 11.5% to 31.1 billion rials. Non-financial companies accounted for the largest share at 48.2%, followed by households at 42.7%. Financial companies accounted for 5.9%, while other sectors represented 2.6%.

Conventional banks recorded 12.7% growth in total credit, while lending to the private sector increased 11.9% to 23.8 billion rials.

Deposits also expanded across the banking system. Total deposits held by other depository corporations rose 13.2% to 37.3 billion rials, while private-sector deposits increased 12.7% to 24.7 billion rials.

Households accounted for 48.5% of private-sector deposits, followed by non-financial corporations at 35.2% and financial corporations at 14.6%.

At conventional banks, deposits increased 14.6% to 29.3 billion rials. Broad money supply grew 15% to 29.3 billion rials, with narrow money increasing 28% and quasi-money rising 9.9%.

Investment activity also increased. Conventional banks’ securities investments rose 26.2% to 7.3 billion rials. Holdings of government development bonds increased 20.4% to 2.5 billion rials, while foreign securities holdings rose 30.8% to 2.7 billion rials.

Borrowing costs eased during the year. The weighted average deposit rate at conventional banks fell to 2.19% from 2.57%, while the average lending rate declined to 5.31% from 5.51%. The overnight interbank lending rate dropped to 3.48% from 4.14%.

The central bank’s average repo rate also fell to 4.25% from 5%.

Oman’s nominal GDP contracted 2% in the first quarter of 2026, mainly because petroleum activity fell 11.7%. The non-hydrocarbon sector grew 5.9%, while real GDP expanded 2.6%. The average Omani oil price reached $83.90 a barrel in July, up 15.7% from a year earlier.

Oil prices rose on Monday while stocks and bonds came under pressure after US President Donald Trump rejected Iran’s latest proposal to reopen the Strait of Hormuz, reversing some of the optimism that had supported markets late last week.

Brent crude gained more than 3 percent in early European trading, moving above $107 a barrel as investors reassessed the risks to global energy supplies. US West Texas Intermediate crude also climbed nearly 2 percent to above $94 a barrel.

Iran presented a proposal at last week’s United Nations General Assembly calling for a seven-day halt in hostilities and the reopening of the Strait of Hormuz. The waterway is a major route for global energy shipments, and disruption there has raised concerns about supply shortages and higher prices.

Trump said he had rejected the proposal but indicated that negotiations could resume. He told Axios that Iran wanted an agreement but that its terms did not match what Washington was seeking. Axios reported that indirect talks between the two sides could begin as early as Monday.

Iran has said reopening the Strait of Hormuz would depend on several conditions, including the release of frozen assets, the removal of sanctions on its oil industry and an end to the US naval blockade.

Oil prices had fallen more than 2 percent on Friday after news of Iran’s proposal raised hopes of an easing in tensions. Monday’s rebound reflected renewed uncertainty over whether diplomatic efforts could produce a deal.

The market reaction extended beyond oil. European shares were mixed in early trading, with the Euro Stoxx 50 down about 0.5 percent and the Stoxx 600 up 0.25 percent. Spain’s IBEX 35 fell 0.45 percent, while the FTSE 100, CAC 40, FTSE MIB, DAX 30 and AEX were between 0.1 percent and 0.5 percent lower.

Asian markets also showed mixed moves. South Korea’s Kospi fell 2.3 percent after reopening from a long break, while Japan’s Nikkei 225 was little changed. Hong Kong’s Hang Seng gained 0.7 percent and Shanghai’s Composite Index dropped 1.8 percent.

US stock futures pointed to a weaker opening. S&P 500 E-Mini futures fell 0.5 percent, while Nasdaq 100 E-Mini futures were about 1 percent lower. On Friday, the S&P 500 gained 0.5 percent, the Dow rose 478 points, or 0.9 percent, and the Nasdaq added 0.5 percent.

Bond markets remained under pressure as inflation concerns increased. The US 10-year Treasury yield briefly exceeded 5.21 percent, near its highest level since 2007, compared with 3.97 percent when the conflict began. Japan’s 10-year yield stood at 3.095 percent.

The dollar rose to 157.69 yen from 157.19 yen, while the euro was little changed at $1.1388. Gold declined more than 2 percent to about $4,220 an ounce.

Chinese-owned car brands are gaining a growing share of Norway’s rapidly expanding electric vehicle market, even as more Norwegian drivers express concerns about buying vehicles from Chinese manufacturers.

Electric cars accounted for 97.8% of new car registrations in Norway during the first eight months of 2026, according to the Norwegian Road Federation. The country remains the world’s leading market for electric vehicle adoption and is far ahead of the European Union, where electric cars represented 21.7% of new registrations between January and August, according to the European Automobile Manufacturers’ Association.

About one in four new electric vehicles registered in Norway this year came from Chinese brands or companies with Chinese ownership. Manufacturers such as BYD, NIO and Dongfeng, along with Chinese-owned brands including Volvo and Polestar, accounted for about 25% of new EV registrations during the first half of the year.

Their presence has expanded rapidly. Chinese brands were almost absent from Norway’s car market in 2019, but have since become one of the largest groups by ownership origin.

A survey conducted by the Norwegian Electric Vehicle Association between March 31 and May 3 found that 31% of nearly 15,000 EV owners questioned would avoid buying a Chinese brand for political reasons. That compared with 23% in the previous year’s survey.

“New cars are, in practice, computers on wheels,” association Secretary General Christina Bu said.

She said greater attention to data security and privacy was making consumers more conscious of where vehicles come from and how information collected by them is handled.

Norwegian security researchers previously found that a vehicle produced by Chinese manufacturer NIO was transmitting data to China. Separate testing of a Yutong bus found that the manufacturer had access to its control system, raising concerns about whether such vehicles could potentially be disabled remotely.

Despite these concerns, Chinese-owned manufacturers continue to attract buyers. Bu said consumers consider several factors when purchasing vehicles, including price, technology, data security and ethical concerns.

An earlier association report suggested Chinese-owned brands could overtake European manufacturers in Norway as soon as 2027 if current trends continue.

Chinese manufacturers are also expanding across the EU. Registrations among five groups featuring Chinese brands rose about 71% in August from a year earlier, while their combined share of the new-car market increased from 6.6% to 10.8%.

Leapmotor registrations rose 211%, Chery increased 201%, BYD climbed 129% and Geely Group grew 24%.

Meanwhile, political resistance to Tesla among Norwegian consumers has declined. The survey found that 24% would avoid Tesla for political reasons, down from 43% last year.

Bu attributed the change partly to reduced attention surrounding Tesla chief executive Elon Musk’s political activities. Tesla nevertheless remained Norway’s best-selling new-car brand, with a 17.5% registration share through September 24.