Since the British withdrawal from the Persian Gulf in the early 1970s, Oman has relied on the United States as a key defense partner, and successive U.S. presidential Administrations have considered Oman important to the promotion of regional stability and peace in the Middle East. Over the past decade, Oman has played the role of discreet mediator, having served as an intermediary in seeking to resolve conflict in Yemen and nuclear negotiations with Iran. Oman’s strategic location at the entrance to the Strait of Hormuz, one of the world’s most important oil chokepoints, and along the Arabian Sea approaches to East Africa and the Red Sea provide it with some regional and global influence. In January 2020, Oman’s long-time leader, Sultan Qaboos bin Sa’id Al Said, passed away and was succeeded by his cousin Haythim bin Tariq Al Said (born 1955). Sultan Haythim leads a stable, high-income nation, though Oman faces challenges in maintaining its decades-long social contract, in which oil has brought prosperity to its citizens in exchange for their apparent acceptance of the Sultan’s absolute rule. Like the other Gulf Cooperation Council (GCC) states—Saudi Arabia, Qatar, the United Arab Emirates (UAE), Bahrain, and Kuwait—Oman derives most of its state income from hydrocarbon production and export; however, Oman’s hydrocarbon-focused economy is smaller than those of its wealthier neighbors. To curb government spending, attract foreign investment, and diversify the economy, Sultan Haythim has launched “Vision 2040,” a strategic plan similar to those of other GCC states. The 2023-2025 war between Israel and Hamas in Gaza sparked expressions of widespread opposition to the United States and Israel in the Sultanate. During the war, some Omanis boycotted certain U.S. corporations to protest U.S. support for Israel. Omani government policy may reflect broad sympathies among Omanis for the Palestinians, as well as fears that Israel could be jeopardizing regional stability in its conflicts with various actors (including Iran, Oman’s large northern neighbor with which it has normal relations). Oman is not a signatory to the Abraham Accords, and Omani officials have repeatedly stated that the two-state solution is the only path to resolving the Israeli-Palestinian conflict. Before the Gaza war, Oman opened up its airspace to Israeli commercial air carriers. During the war, Israeli carrier El Al paused flying over Oman on flights to southeast Asia. Oman and the United States maintain strong defense ties, whereby Oman permits the U.S. military to use its military facilities. However, when compared to other Gulf Arab states, such as Saudi Arabia, the United Arab Emirates, and Kuwait, U.S.-Omani defense relations are smaller in scale. The United States has provided minimal foreign assistance to Oman, mainly for border security. From 1946 to 2025, the United States provided Oman with $1.6 billion in total economic and military assistance. The U.S.-Oman Free Trade Agreement was signed on January 19, 2006, and ratified by Congress (P.L. 109-283, signed September 26, 2006). Today, the United States is one of Oman’s largest trading partners and foreign investors. In 2024, the total volume of bilateral trade was $3.2 billion. In April 2025, the White House announced a 10% reciprocal tariff rate on imports of Omani goods, reaffirmed in late July; certain categories of goods are subject to higher tariffs globally, including aluminum, of which Oman is an exporter.
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