A man looks at the Rasul al-Adham Mosque at Sultan Qaboos Port in Muscat, the capital of Oman, on February 5, 2026.
Loic Venance | AFP | getty images
The Trump administration’s threats against Oman, a longtime US ally, have unsettled a country known for farming Prestige Firmly in the geopolitical spotlight as the “Switzerland of the Middle East”.
Located on the southeastern coast of the Arabian Peninsula and facing Iran in the strategically important Strait of Hormuz, Oman has acted as a key arbiter in regional crises, including the US and Israel-led war against Iran.
Treasury Secretary Scott Besant warned on Thursday that the US would “aggressively” impose sanctions against Oman if it helped Iran set up a tolling system in the Strait of Hormuz, a waterway that typically handles about 20% of the world’s global oil traffic.
“In particular, Oman should be aware that the US Treasury will aggressively target any actor directly or indirectly involved in facilitating tolls for the Strait and any willing participant will be punished,” Besant said. Said In a post on X.
“All countries should strongly reject any efforts by Iran to disrupt the free flow of commerce.”
His comments came less than 24 hours after President Donald Trump threatened military action against the Gulf partner.
When asked by a reporter during a Cabinet meeting for his views on overseeing Oman and Iran’s trade through the Strait of Hormuz, Trump said, “Oman will behave just like everybody else, or we’ll have to blow them up. They understand it. They’ll be fine.”
US President Donald Trump (C) listens to US Interior Secretary Doug Burgum (L) speak with US Secretary of State Marco Rubio and US Commerce Secretary Howard Lutnick during a Cabinet meeting in the Cabinet Room of the White House in Washington, DC on May 27, 2026.
Vin McNamee | Getty Images News | getty images
CNBC has reached out to a spokesperson for Oman’s Foreign Ministry and is awaiting response. Iran has done this before told It could jointly manage the Strait of Hormuz with Oman, although Muscat has not said it is seeking control over one of the world’s most important oil chokepoints.
Geopolitical analysts said the US threats against Oman, a close economic and security partner, marked a highly unusual change in stance.
Brian Catulis, senior fellow at the Middle East Institute, a Washington-based think tank, said Oman plays an important role in the Strait of Hormuz due to geography, with territory on the western side of the waterway. He said the country has a long-term policy to maintain open flow of oil and other commodities.
“It also sees itself as the ‘Switzerland’ of the Middle East – a mediator that talks to all sides and seeks to maintain positive relations with all countries,” Catulis told CNBC by email.
“Trump’s threats against Oman are indicative of his frustration with his inability to deliver the results he expects in Iran,” Katulis said. “This is another example of their performative diplomacy and use of troll power that is unlikely to amount to anything more than mere words.”
Trump’s warning to Oman
Mehran Hagarian, director of research and programs at the Bourse & Markets Foundation, an economic think tank, said Trump’s warning against Oman was the first time the US had threatened to attack a GCC state.
“This was in response to a question about recent reports that Iran and Oman are coming up with a new mechanism over the Strait of Hormuz, which does not involve tolls, but involves shared ‘control’. Control will remain with Iran and Oman for the rest of the time due to geographical location.” Said Via social media on Wednesday.
He added, “What he said was likely not intentional and stems from his disdain towards Omani FM because of Al Busaidi’s mediation in February. Despite this, Trump’s words would require the GCC to issue a statement to condemn it.”
Ships are seen anchored in the Strait of Hormuz near the port city of Khasab on Oman’s northern Musandam Peninsula on May 17, 2026.
– | AFP | getty images
Senator Chris Murphy, D-Conn., sharply criticized the president for his comments regarding Oman.
Murphy said, “The threat to ‘blow up’ Oman, America’s ally and key mediator in negotiations with Iran, is another indication of why this war has gone off the rails. They are in a constant state of panic, making mistake after mistake.” Said In a post on social media on Thursday.
A White House spokesperson was not immediately available to comment.
Citing unnamed sources familiar with the matter, Reuters reported on Thursday that the US and Iran reached an agreement to extend their ceasefire and lift restrictions on shipping through the Strait of Hormuz, although Trump has not yet approved the deal and Iranian state media said it has not been finalized.