Trump Administration Cracks Down on Oman's Ties to Iran

Oman is facing pressure from the Trump administration to cut ties with Iran and its proxies. President Donald Trump threatened to bomb Oman if it interfered with American plans for the Strait of Hormuz, but instead, Iran and Oman are working together to manage a single corridor through the strait.

The Treasury Department has identified several Omani companies that have helped facilitate Iranian sanctions evasion, including exchange houses, banks, shipping services, and entities supporting Iran's aviation sector. Three Omani-based companies were sanctioned in January for helping transport Iranian oil, arranging vessels on behalf of the Islamic Revolutionary Guard Corps, and processing payments tied to Iran's proxies.

Further research has revealed several other companies openly advertising services that facilitate Tehran's commercial activity abroad, including cargo routes between Iranian and Omani ports. Persian-language exchange services also advertise arrangements for customers to hand over Omani rials in Muscat while the equivalent amount is credited to an account in Iran.

The Treasury Secretary, Scott Bessent, has made it clear that 'every Bank Melli branch must be shuttered' and that commercial support for designated Iranian airlines and oil networks should be terminated. The Trump administration is warning Oman that if it does not comply with these demands, Omani financial institutions will be disconnected from the US-led financial system.