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Throughout the US-Israel-Iran war, one Gulf country’s position has stood out: Oman’s. Despite also being on the receiving end of Iranian attacks in March and May this year, the sultanate has largely maintained a position of neutrality. What’s more, throughout the war, Oman has also continued to engage in diplomatic mediation efforts with Iran, with whom it shares deep historical and trade ties.
Omani Foreign Minister Badr Albusaidi openly criticised the February 28 US-Israel strikes on Iran in an op-ed for The Economist as an “unlawful military strike”, launched when the US and Iran seemed “on the verge of a real deal” — which the sultanate was helping mediate. The country was also the only one to congratulate Mojtaba Khamenei on being appointed the next Supreme Leader of Iran, after his predecessor was confirmed killed in the first attack. Oman was notably less vocal than its Gulf neighbours in condemning the barrage of Iranian attacks that followed but eventually declared the strikes a violation of sovereignty and international law.
This default position of ‘friend to all, enemy to none’ is what has long earned it the name ‘Switzerland of the Middle East. And curiosity begs the question: why? Why does Oman continue to actively stand in as mediator and push for diplomacy, even in the face of war? The answer lies in its foreign policy, founded on the tenets of good neighbourliness, tolerance, dialogue and pragmatism. Here are the key factors to understand:
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The ‘good neighbour’ concept
Geographically, Oman shares land borders with Saudi Arabia to the west, UAE to the northwest, and Yemen to the southwest. But its concept of neighbours extends beyond physical borders on a map. The country considers nations with whom it has built strategic partnerships to also qualify as neighbours, which is why it counts Iran (as well as India and Pakistan) among its most important relationships.
In the interests of its own security and long-term economic stability, Oman believes it not only important to maintain its own relationships with those it considers neighbours, but also to help them navigate conflicts with each other. To this end, its foreign policy is to “never close any avenue of communication”, no matter how difficult the crisis, and not “adopt a policy of exclusions or boycotts when it finds itself in disagreement with the views or positions of others”.
Oman’s principle of pragmatism comes from its geographic positioning as a country overlooking the Strait of Hormuz, Sea of Oman, Indian Ocean and Arabian Sea. It considers the Strait of Hormuz, in particular, as a ‘special responsibility’ — one it cannot afford to abandon “under any circumstance” (more on this below). This policy is why Oman says it resists the temptation to allow passing events to determine policy.
“Neighbours are forever. Their views and interests may shift over time; policies and governments come and go. However, the people, and their culture, and the geography remain. While Oman may have differences with certain governments, these are less important than the enduring people-to-people and nation-to-nation continuities that bind everybody. Oman’s pragmatic approach is based on the confidence that in the long term, mutual interests will outlast short term difficulties,” it says.
Oman and the Strait of Hormuz
As mentioned before, Oman’s prime location means part of the Strait of Hormuz falls in its territorial waters (the other half falls under Iran). Prior to the US-Israel-Iran war, shipping through the strait was free and unrestricted, with no talks of tolls. Safe activity in the strait, and the global traffic it enabled, would naturally benefit Oman's ports, which connect the Gulf with the Indian Ocean. The security of the Hormuz strait also translates into benefits for other regional countries, and this “geostrategic reality” in turn creates room for more mutually beneficial partnerships with other Gulf countries, bringing in money and prosperity for both the Sultanate and its surrounding economies.
Data published by its state news agency reveals a significant year-on-year increase during times of peace. But even during times of conflict, Oman has sought to maintain normalcy in international trade. This year too, as regional tensions threatened safety of navigation in Hormuz, Oman's Sohar port and freezone emerged as a key gateway for global shipping. During the first half of 2026, the port recorded a total cargo throughput of 52 million metric tons, a 52 per cent increase compared with the same period in 2025.
The crucial nature of the waterway for Oman is more than evident and explains why the Strait holds an uncompromisable position in the country’s foreign policy.
What conflicts has Oman helped navigate in the past?
Iran-Iraq war of 1980-88: As a neutral venue, Muscat was the secret location where both parties conducted ceasefire talks. Oman also successfully facilitated high-stakes prisoner exchanges towards the end.
The Gulf-Qatar boycott: In 2017, Saudi Arabia, UAE, Bahrain and Egypt cut diplomatic and trade ties with Qatar, which was accused of funding extremist groups. Oman chose to stay politically neutral till the Gulf nations reconciled in 2021.
US-Houthi campaign: After October 7, 2023, Yemen’s Houthis began targeting Israeli territory and commercial ships transiting the Bab al Mandab Strait. The US launched its own military campaign to compel the Houthis to end its attacks. On May 6, 2025, Oman announced a major breakthrough when it mediated a ceasefire between the two parties.
What about its efforts in the US-Iran war?
Prior to the February 28 attack, Oman was actively mediating indirect nuclear negotiations between the US and Iran, with talks held up in Muscat on February 6 and then in Geneva on February 26. Since the war broke out, its role has shifted to negotiating a maritime agreement regarding the Strait of Hormuz.
In August, Iran said it reached a revenue-sharing agreement with Oman on the Strait of Hormuz, as the two sides pushed for a wider deal on the management of the crucial waterway. Iran and Oman agreed on a seven-mile-wide temporary shipping route where inbound vessels use Iranian territorial waters, while outbound ships traverse a mix of Iranian and Omani waters.
However, Iranian officials have emphasised — as recently as earlier this month — that determining the navigational corridor with Oman does not mean the strait is open, and that normal traffic will stay halted until the US complies with the terms of the 14-point Islamabad Memorandum.
The war will enter its ninth month on October 28.