A man looks at the Rasul Al Adham Mosque from the corniche of 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 put the country known for cultivating a reputation as the “Switzerland of the Middle East” firmly in the geopolitical spotlight.
Oman is located on the southeast coast of the Arabian Peninsula, facing Iran across the strategically important Strait of Hormuz, and has played an important mediating role in regional crises, including the US-Israel-led war against Iran.
Treasury Secretary Scott Bessent warned Thursday that the United States would “aggressively” impose sanctions on Oman if it helps Iran establish a toll system in the Strait of Hormuz, a waterway that typically handles about 20% of the world’s oil shipments.
“Oman, in particular, should know that the U.S. Treasury Department will actively target any party directly or indirectly involved in facilitating the Strait Toll, and those who actively cooperate will be punished,” Bessent said in a post on X.
“All countries should firmly reject any efforts by Iran to impede the free flow of commerce.”
His comments came less than 24 hours after President Donald Trump threatened military action against the Gulf state.
Asked by reporters during a Cabinet meeting what he thought about Oman and Iran, which oversee trade in the Strait of Hormuz, Trump said: “Oman will act like any other country, or we’ll just blow it up. They understand that. They’ll be fine.”
CNBC has contacted a spokesperson for Oman’s Ministry of Foreign Affairs and is awaiting a response. Iran has previously hinted at the possibility of jointly controlling the Strait of Hormuz with Oman, but Muscat has not said it seeks control of one of the world’s most important oil chokepoints.
Geopolitical analysts said the US threats against Oman, a close economic and security partner, signaled a highly unusual shift in attitude.
Brian Katouris, a senior fellow at the Middle East Institute, a Washington-based think tank, said Oman plays an important role in the Strait of Hormuz because of its geography on the western side of the Strait. He noted that the country has a long-standing policy of maintaining open flows of oil and other goods.
U.S. President Donald Trump (center) listens as U.S. Secretary of the Interior Doug Burgum (left) speaks with Secretary of State Marco Rubio and Secretary of Commerce Howard Lutnick during a Cabinet meeting in the Cabinet Room at the White House on May 27, 2026 in Washington, DC.
Win McNamee | Getty Images News | Getty Images
“China sees itself as the ‘Switzerland’ of the Middle East, an intermediary that speaks with all parties and seeks to maintain positive relations with all countries,” Katouris told CNBC in an email.
“President Trump’s threats against Oman reflect his frustration and despair at not being able to achieve the results he had hoped for in Iran,” Katouris said. “This is another example of his performative diplomacy and use of troll power, and is unlikely to be more than just words.”
President Trump’s warning to Oman
Mehran Hagirian, director of research and programs at the Stock Exchange and Bazaar Foundation, an economic think tank, said Trump’s warning against Oman was the first time the United States had threatened to attack a GCC country.
“This was in response to a question about recent reports suggesting that Iran and Oman are coming up with a new mechanism of shared ‘control’, but not tolls, in the Strait of Hormuz. Control is something that Iran and Oman will retain for the rest of the time due to geography,” Haghirian said via social media on Wednesday.
“His comments were probably unintentional and stemmed from his disdain for Oman FM over the al-Busaidi mediation in February. In any case, the GCC would need to issue a statement to condemn Trump’s comments,” he added.
On May 17, 2026, a ship is seen anchored in the Strait of Hormuz off the coast of the port city of Hassab in the northern part of Oman’s Musandam Peninsula.
– | AFP | Getty Images
Sen. Chris Murphy (D-Conn.) harshly criticized the president’s comments about Oman.
“The threat to ‘blow up’ Oman, a US ally and the main intermediary in negotiations with Iran, is just another symptom of why this war has gone off the rails. They are constantly panicking and making one mistake after another,” Murphy said in a social media post Thursday.
The White House press secretary did not respond.
The United States and Iran have reached an agreement to extend the ceasefire and lift restrictions on ships passing through the Strait of Hormuz, Reuters reported on Thursday, citing unnamed sources familiar with the matter, but President Trump has not yet approved the deal and Iranian state media said the deal was not finalized.
