In the maelstrom of noise over Iranian action in the Strait of Hormuz, there has been much less discussion of the country on the other side of the contested waterway: Oman.
Over the course of the conflict in Iran, Oman has been a somewhat enigmatic actor. While cooperating with the United States as a mediator, it has also displayed an openness to Tehrans schemes to impose tolls on shipping through the Strait.
That would be a significant mistake. Unlike Iran, Oman has a bright, promising future due to recent effective economic reforms and the opportunity to join the growing regional cohesion against the Islamic Republic. For the sake of the Omani people, Muscat should embrace this path to greater freedom, opportunity, and prosperity.
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Despite the accident of geography that put them on either side of the Strait, there are plenty of reasons a rapprochement with Iran makes no sense for Oman. In the 2026 edition of The Heritage Foundations Index of Economic Freedom, an annual benchmark report that compares entrepreneurial competitiveness and resilience environments of countries around the globe, Oman made a splash by achieving the second-best score improvement (behind Javier Mileis Argentina) and moving up by impressive 19 places to rank 39th globally.
This transformative advancement reflects the countrys ongoing economic expansion and strength under the Oman Vision 2040 framework. Fiscal consolidation and more effective management of public finance have helped reduce the debt level to less than 40 percent of GDP. Legal reforms focused on ensuring greater transparency and accountability have impressively combated corruption.
In addition, opening up Omani businesses to greater foreign investment has also contributed to the countrys success. As a result, the International Monetary Fund estimates Omans GDP per capita at $21,645 â a nineteen percent increase over 2025.
This happy state of affairs could not be further from the disastrous economic dysfunction playing out in Iran. Despite having the worlds second-largest proven oil reserves (to say nothing of significant natural gas reserves), due to systemic mismanagement by the regime, Irans economy was in a compounding free fall long before Operation Epic Fury. Things are now far worse.
Ten years ago, after Barak Obamas JCPOA gave Tehran an economic lifeline, inflation was around 7%. It is now around 50%, with prices for food closer to 100%. Poverty levels have risen dramatically, with millions more projected to fall into poverty in coming months. Official estimates put unemployment at about 10%, but independent assessments put it over 25%, with young people bearing the brunt of the job losses. As a res
