Oman and Iran share close diplomatic, economic, and military ties. According to Kenneth Katzman of the Congressional Research Service, “Oman has a tradition of cooperation with Iran dating back to the Shah of Iran’s regime and Oman has always been less alarmed by the perceived threat from Iran than have the other Gulf states.” Unlike the majority of its Gulf neighbors, Oman managed to uphold diplomatic relations with both sides during the Iran-Iraq war from 1980-1988 and strongly supported UN Security Council resolutions to end the conflict. Secret cease-fire talks between the two adversaries were held in Muscat during the war, and although an agreement was never reached during these talks, they did reduce distrust on both sides. Moreover, after the war, Oman mediated talks to restore diplomatic ties between Iran and Saudi Arabia and Iran and the United Kingdom.
During the Persian Gulf War, Iran-Oman relations were damaged after Iran began running attacks on tanker movements in the Persian Gulf and placed anti-ship missile launchers along the Strait of Hormuz. The Gulf neighbors have since restored their ties and have conducted joint military exercises as recently as February 2011. Oman’s leader Sultan Qaboos traveled to Iran in 2009 for the first time since Iran’s 1979 revolution. Though on two occasions the U.S. has dispatched high-level officials to discuss Iran with Oman, the fact that Oman has avoided publicly expressing any concerns regarding Iran’s nuclear program is likely a reason why the two states have managed to maintain strong ties.
In addition to strong diplomatic and political ties, Iran and Oman cooperate economically on several fronts, including energy. Most recently, the Gulf neighbors signed an initial agreement to begin supplying large quantities of natural gas from Iran to Oman, a project that was earlier reported to be worth between $7-12 billion. In addition to these major economic projects, the two countries have opened a joint bank to facilitate their mutual financial dealings, agreed to develop the Kish and Hengam gas fields in the Gulf, and signed a memorandum of understanding for a potential joint petrochemical project valued at $800 million.
About Iran nuclear program, the Omani government official position on Iran’s nuclear program is as follows: “The sultanate hopes Washington will engage in a ‘direct dialogue’ with Teheran to resolve the crisis over the Iranian nuclear program. The sultanate has no reason not to believe Iran’s assurances that its program has purely civilian purposes. This region, no doubt, does not want to see any military confrontation or any tension".