Oman sultan shifts lawmaking powers amid unrest

Oman's ruler granted lawmaking powers Sunday to officials outside the royal family in the boldest reforms yet aimed at quelling protests for jobs and a greater public role in politics.

The decree by Sultan Qaboos bin Said reflects the scramble to appease demonstrators and head off possible wider unrest in the strategically important nation, which shares control of the Gulf waterway that carries 40 percent of the world's oil tanker traffic.

Just hours before the announcement, suspected arsonists burned a government office and the home of a clan leader in Ebri, about 210 miles (350 kilometers) northwest of the capital Muscat. No injuries were reported, but military units boosted their presence in the area.

The sultan has made sweeping Cabinet shake-ups and promises for thousands of new civil service posts since demonstrations began late last month. But the latest plan introduces the most fundamental changes about how the country is governed.

Two current advisory councils - one elected and another appointed by the sultan - will receive powers to make laws and regulations within 30 days after a special commission decides how to amend the state statutes. But it was not immediately clear if the sultan would retain full veto power.

Unrest in the Middle East and North Africa -- country by country

Demonstrations have spread across parts of the Middle East and North Africa. Here is the latest from each country and the roots of the unrest.

Friday developments:

BAHRAIN

Hundreds of people were injured in Bahrain Friday, when rival groups clashed over an attempted march in the town of Riffa, a residential area where the ruling Al-Khalifa family lives.

The national health ministry said 774 people were injured and 107 were hospitalized in the wake of the fighting.

Roots of unrest:

Protesters initially took to the streets of Manama to demand reform and the introduction of a constitutional monarchy. But some are now calling for the removal of the royal family, which has led the Persian Gulf state since the 18th century. Young members of the country's Shiite Muslim majority have staged protests in recent years to complain about discrimination, unemployment and corruption, issues they say the country's Sunni rulers have done little to address. The Bahrain Center for Human Rights said authorities launched a clampdown on dissent in 2010. It accused the government of torturing some human rights activists.

Mideast turmoil increases EU inflation risks

European inflation risks have mounted as a result of turmoil in the Middle East, the European Commission has warned as a fall in eurozone unemployment highlighted the robust pace of economic growth across the continent at the start of the year.

Surging energy and commodity prices mean inflation this year will be "markedly" stronger than thought with risks to forecasts "somewhat tilted to the upside" because of recent geo-political tensions, the European Union's executive arm warned in its latest update on the region's economy.

Tuesday's comments came as Eurostat, the EU's statistical office, reported the eurozone annual inflation rate hit 2.4 percent in February, up from 2.3 percent in January and the highest since October 2008.

The Commission's forecasts and latest economic data strengthen the case for the European Central Bank taking a harder line on inflation threats at its council meeting on Thursday.

Oman deploys army units fearing more unrest

Oman deployed troops north of the capital Muscat and near the border with the United Arab Emirates on Tuesday, following three straight days of anti-government protests, a government official said.

Oman, ruled by a powerful family dynasty, is the latest Arab nation to be swept up in a wave of regional unrest that has already brought down two leaders and threatened the rule of others.

The center of protests in Oman has been the port town of Sohar, about 120 miles (200 kilometers) northwest of Muscat, where demonstrators demanding higher salaries and jobs have clashed with security forces.

Police killed a protester in Sohar on Saturday, after demonstrations turned violent. Several government buildings and a supermarket were set on fire, local media reported.

Anticipating more unrest, the government deployed troops and military vehicles around the capital and near Oman's border with the UAE, a government official said Tuesday. The official spoke on condition of anonymity because he was not authorized to release information to the media.

Protests have been rare in Oman and the ruler, Sultan Qaboos bin Said, is offering reforms to try to quell the demonstrations. On Sunday, he ordered 50,000 civil service jobs be created and offered a monthly stipend of 150 rials ($390) for job seekers. A day earlier, the sultan replaced six Cabinet members.

About a thousand people participated in a pro-government rally on Tuesday afternoon. They rallied in central Muscat, in front of the capital's biggest mosque, chanting slogans in support of Oman's long-serving ruler and calling on the anti-government protesters in Sohar to refrain from destroying state and private property.

Unmoved by sultan's offer, Oman protesters to continue demonstrations

A fourth day of demonstrations are expected in Oman on Tuesday, this time in the capital Muscat.

On Monday, anti-government protesters in the key port city of Sohar refused to end protests despite orders from the sultan to hire 50,000 people and pay a stipend to people who are out of work, sources in the Gulf state told CNN.

Demonstrators in Sohar have blocked routes to the port and the industrial zone, prompting port staff to leave work, two sources in the town said.

Protesters demands include greater freedom of expression, higher salaries, a clampdown on government corruption, a new constitution, and the prosecution of security officials whose actions led to the death of demonstrators.

Oman is not a major oil producer, but a significant share of the world's oil shipping passes through the Strait of Hormuz, along the Omani coast.

Witnesses did not report any clashes between security and the protesters, saying the two sides were keeping apart.

There were reports of attacks on property over the weekend, but on Monday the protesters organized committees to protect buildings and handle traffic, CNN's sources said.

Fifteen young protesters submitted their demands in writing to officials Monday, with promises that the demands would passed to the sultan.

Sultan Qaboos bin Said ordered the hiring of 50,000 citizens in the aftermath of weekend protests that left at least one person dead and 11 others injured, state-run media reported Sunday.

The ruler also issued royal orders saying job-seekers who register with the Ministry of Manpower will be paid 150 rials (about U.S. $390) per month until they find jobs, according to the Oman News Agency.

After reports of multiple deaths on Sunday, Ahmed Al Saidi, the minister of health, said there had only been one death.