Feb 5 (Reuters) - Andrew Mills

Deputy Bureau Chief, Gulf

Welcome to this week’s Gulf Currents, where Gulf rivals angle for influence in Syria, as Chevron explores offshore prospects and Saudi Arabia readies major investments. QatarEnergy locks in LNG buyers across Asia, while Dubai advances its Loop project. All this sets the stage for a U.S.–Iran showdown in Oman. And in a flashy demonstration of Gulf Arab security, Qatar’s MOI drops another viral, action‑film‑grade video.

NEWS BRIEFING

- Chevron’s preliminary deal with Syria’s state oil firm and with Qatar’s UCC Holding to study offshore exploration marks a rare foreign energy foray, as Damascus seeks to revive its industry, while Saudi Arabia readies a multi‑billion‑dollar investment package that includes a new private airline, deepening Riyadh’s post‑sanctions engagement with Syria. The moves underscore accelerating Gulf competition for influence and commercial footholds in a politically shifting Syria.

- QatarEnergy has sealed long‑term LNG deals with Malaysia’s Petronas and Japan’s JERA, bolstering Asian supply security as both countries increase imports to meet rising power demand. The agreements reinforce Qatar’s push to lock in decades‑long buyers. Together, they highlight a global shift back to long‑term LNG contracts as energy security concerns outweigh flexibility.

- Dubai has launched the first phase of its 24 km Dubai Loop, a high‑speed underground transport system by Elon Musk’s Boring Company, starting with a 6 km segment costing 600 million dirhams. The full project is valued at 2.5 billion dirhams. It’s a major step toward easing the city’s chronic traffic congestion.

OMAN TALKS LOOM AS US AND IRAN REMAIN LOCKED IN GULF STANDOFF

A high‑stakes U.S.–Iran meeting slated for Friday in Oman is now shaping up as the cliffhanger end to a week of scrambled diplomacy in the region and rising anxiety across Gulf capitals.

The talks were initially billed for Turkey, where U.S. Special Envoy Steve Witkoff and Iranian Foreign Minister Abbas Araqchi expected to meet. Regional players searched for any opening to cool tensions, intensified by Iran’s lethal protest crackdown and U.S. President Donald Trump’s deployment of forces capable of projecting overwhelming strike power — paired with warnings that “bad things” could follow without a deal.

But even as officials signalled readiness to sit down, the process wobbled: Tehran pushed to limit the agenda to the nuclear file, avoiding its ballistic‑missile programme — a core U.S. concern given Iran’s expanding range and the threat it poses to U.S. forces, Gulf allies and Israel. It’s still unclear if missiles will ultimately be on the table.

Iran also resisted the proposed venue, ultimately steering the meeting to Muscat, a familiar Gulf backchannel where intermediaries have for years quietly stepped in to keep diplomacy alive.

The stakes for the Gulf could hardly be higher. Washington has surged military assets into and around the Gulf — including the Abraham Lincoln carrier group, underscoring rapid U.S. strike capacity — meant both to deter Iran and signal that military options remain if talks fail.

The buildup is both a shield and a source of anxiety for Gulf states hosting U.S. forces and sitting within range of Iranian missiles. The memory of last June’s Iranian strike on the U.S. Al Udeid air base in Qatar remains fresh.

Then came the week’s vivid reminders of how quickly the theatre can ignite. U.S. forces shot down an Iranian Shahed‑139 drone near the Lincoln in the Arabian Sea, and hours later IRGC boats, backed by a drone, moved to confront the U.S.-flagged Stena Imperative in the Strait of Hormuz before a U.S. warship intervened.

With oil markets swinging on fears that U.S.–Iran tensions could spill into open conflict and disrupt Gulf supplies, regional leaders will nervously be watching the Oman talks. Can diplomacy outrun events?

THE LAST WAVE: EXPLOSIONS, DRIFTING SUVS AND HELICOPTERS

Qatar’s Ministry of Interior—whose cinematic social‑media videos have amassed a cult following—has unveiled its latest mini-epic, capturing Wednesday’s conclusion of the Arabian Gulf Security (4) exercise, which seeks to strengthen the U.S. allies’ collective security cooperation against transnational threats.

It opens with limousines sweeping into a desert base as leaders exchange greetings. The beat drops and choreographed chaos begins: black‑uniformed commandos storm the parade ground, APCs rumble in and synchronized Nissan Patrols carve perfect donuts. Riot horses charge through fire and smoke, while beachside explosions shoot skyward. A rooftop gunman fires a machine gun amid explosions as helicopters swoop overhead. SWAT teams overrun a bus, followed by SUVs drifting through yet more flames.

Another MOI blockbuster secured.

(Editing by William Maclean)