Oman’s Strategic Balancing Act: Navigating Tensions in a Volatile Region

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By : Lowell Hagan

Published on: August 25, 2026 • 03:38 AM

In the geopolitical chess game of the Strait of Hormuz, Oman finds itself in a precarious position, balancing ties with Iran against the formidable presence of its long-time ally, the USA.

“If Oman gets in our way, we will bomb them into oblivion.” This stark threat was reportedly made by US President Donald Trump during a call with Fox News, not an official from Iran, highlighting the intense pressure Oman faces from both sides.

As the closest ally of the US over recent years, Oman is now thrust into a dicey situation. Sascha Bruchmann from the International Institute for Strategic Studies in Bahrain explains that Oman is caught between the conflicting interests of the US and Iran, feeling the squeeze from both directions.

Ongoing Negotiations and Strategic Challenges

Oman, known for its strategic diplomatic moves akin to Switzerland’s in Europe, historically mediates conflicts in the region. However, the ongoing war between the US and Iran over the Strait of Hormuz places Oman in an increasingly untenable position for mediation.

Diplomats in discussion at a negotiation table with maritime charts and strategic documents
Negotiations over the Strait of Hormuz remain central to Oman’s diplomatic efforts

Negotiations have been underway for weeks, aiming to reopen the Strait of Hormuz for international shipping and trade. These talks were part of a planned agreement between Iran and the USA. Nevertheless, President Trump seems unhappy with the impending agreement between Muscat, Oman’s capital, and Tehran.

Reports suggest that Oman and Iran agreed to impose transit fees on ships navigating through the Strait of Hormuz. Trump’s reaction was notably harsh, indicating dissatisfaction with Oman’s behavior and threatening severe consequences.

The Implications of Transit Fees

In response to the agreed transit fees, Trump expressed displeasure through social media by posting an image labeling the Strait of Hormuz as American territory. The Omani government has not officially responded to these threats, which is consistent with Oman’s traditionally subdued diplomatic approach.

Lebanese political scientist Mohamed Qawas notes that Oman’s response aligns with its usual calm diplomacy, which tends not to retaliate directly. Oman maintains relations with both the United States and other regional countries, including Iran, aiming to absorb the wrath emanating from Washington.

Oman’s Diminishing Role as a Mediator

While Oman has long been seen as a neutral state in regional conflicts, its ability to act as a mediator has been compromised. “The government in Muscat has lost its role as a mediator, not because the Omanis did not want to mediate, but because Oman’s territory has become part of the bargaining chip,” says Sascha Bruchmann.

This diminishing role is evident as Oman navigates its complex relationships with both Iran and the USA, with its territory caught in the geopolitical tug-of-war.

Public Sentiment and Regional Dynamics

Oman’s strategic importance to the USA is highlighted by the American military’s use of Omani ports and airbases. However, support for the US presence in Oman is waning among the Omani populace, according to Mohamed Qawas. Despite this, the government remains publicly silent.

Military personnel and vessels at a strategic port facility, representing US military presence
American military operations rely heavily on Omani ports and airbases in the region

Iran, exploiting the American presence, has targeted Oman with missile attacks, yet communication channels between Muscat and Tehran remain open even in times of conflict. This ongoing dialogue underscores the complexity of Oman’s position in a region fraught with geopolitical strife.

Oman: A Pawn in a Larger Game

The historical relationship between Iran and Oman goes beyond mere trade agreements. In the 1970s, Iranian troops helped quell a rebellion in southern Oman, securing the ruling Sultan’s power. Decades later, Oman played a pivotal role in facilitating American-Iranian negotiations over a nuclear deal.

Today, Oman continues to maintain ties with both nations but is increasingly pressured by both. Acting as a moderator between these powers is now more challenging than ever, making Oman a pawn in the broader geopolitical plays of larger nations, concludes Sascha Bruchmann.

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