Oman-Iran Foreign Relations

By Will Fulton, Ariel Farrar-Wellman

July 21, 2011

Flag of Oman (Available at Wikimedia Commons)

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 Irans regime and Oman has always been less alarmed by the perceived threat from Iran than
have the other Gulf states.[1] 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.[2] 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.[3]
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.
[4] The Gulf neighbors have since restored their ties and have conducted joint military exercises as
recently as February 2011. Omans leader Sultan Qaboos traveled to Iran in 2009 for the first time since
Irans 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 Irans
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.

NUCLEAR:
July 20, 2011: As of this date, according to its English language website, the Omani Ministry of Foreign
Affairs official position on Irans 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 Irans assurances that its program has purely civilian purposes.
This region, no doubt, does not want to see any military confrontation or any tension.[5]

January 15, 2011: Official representatives from Oman were among a touring group that visited Irans
nuclear facilities. According to its foreign minister, Ali Akbar Salehi, Iran arranged the visit to show that it
has nothing to hide.[6]
October 13, 2010: Speaking to a reporter, Omani foreign minister Yusuf bin Alawi bin Abdallah ruled out
war with Iran and stated that he believes blocking the Strait of Hormuz to be an impossible task in which
Iran would only stifle itself. When asked about Omans role in mediating the dispute over Irans nuclear
program he added, We realize how the problem is deep between Iran and the West as a whole, and we
understand its dimensions and difficulties. Some of these dimensions are difficult to overcome because
they concern strategic policies. But when there is an opportunity that can be used for mediation, we do
not hesitate. Our aim is to help them reach some kind of understanding.[7]
April 27, 2009: U.S. Special Adviser for the Persian Gulf and Southwest Asia Dennis Ross visited Egypt,
Saudi Arabia, the United Arab Emirates, Oman, Bahrain and Qatar to discuss diplomatic efforts to
engage Iran on its nuclear program.[8]
March 19, 2008: U.S. Vice President Richard Cheney visited Oman to discuss cooperation over Irans
nuclear program.[9]

ECONOMIC:
July 11, 2011: Irans deputy oil minister announced that his country will start pumping natural gas to
Oman through an undersea pipeline by March 2012. He added that Iran and Oman signed the initial
contract but the final contract will not be signed until the end of the Iranian calendar year (March 20,
2012).[10]
January 31, 2010: Iranian Ambassador to Oman Hossein Noushabadi announced that Iran and Oman
will launch a joint bank in an effort to increase financial transactions between the two countries.
Noushabadi said that the bank is essential for strengthening financial movement between the two
states. In addition, he added that increased financial ties through a joint Oman-Iran bank would benefit
the existing branches of Irans Bank Melli and Bank Saderat in Oman.[11]The U.S. has sanctioned Bank
Melli and Bank Saderat for their involvement in facilitating Irans nuclear and ballistic missile programs,
for providing services to the Islamic Revolutionary Guard Corps and Qods Force, and for transferring
funds to terrorist organizations.[12]
January 16, 2010: Iran announced that its second overseas trade center in Oman by the end of the
month. Hamid Zadboum, an official with the Trade Promotion Organization of Iran, added that upwards
of 60 Iranian companies are expected to operate from the center in Oman. Irans state media reported
the government had set aside $1 billion to launch 20 overseas trade centers across the globe.[13]
November 25, 2009: Iranian Oil Minister Masoud Mir Kazemi and Omani Oil Minister Mohammed AlRamahi met in Tehran to discuss bilateral investments in the gas sector and joint development of the
Kish and Hengam gas fields in the Persian Gulf.[14]
August 7, 2009: Iran and Oman inked a memorandum of understanding agreeing to construct a
petrochemical unit in Irans South Pars region, a project totaling roughly $800 million. According to
Iranian Oil Minister Gholam-Hossein Nozari, the Omani delegation requested some 2 billion cubic feet
of natural gas from Iran to feed its LNG production units.[15]
August 5, 2009: Iran and Oman reopened negotiations on exporting Irans gas to Oman. Building on the
deal signed by Iran and Oman in April 2009, which did not specify a timeline for the $7-$12 billion
project, the countries renegotiated the amount of Omans investment in the development of the 124 mile
underwater pipeline which would transport gas to Oman at a rate of one billion cubic feet per day.[16]

May 26, 2009: Iran and Oman opened their first joint company for foreign investment. Managing Director
of Iran's Foreign Investments Company Mehdi Razavi noted that formation of this company facilitates
implementation of Iran's needed projects by the Omani private sector and also the Iranian private sector
can use the facilities of the company to perform different projects in Oman.[17]
January 31, 2009: Oman hosted an Iranian trade exhibition. According to Iranian ambassador to Oman
Murtadha Rahimi, the trade exchanges between the two countries as well as the mutual visits by the
businessmen from the two countries increased during the last two years.[18]
September 5, 2008: Iran and Oman began talks on a deal that would allow Iran to use Omani facilities to
process its crude natural gas into liquefied natural gas (LNG) for transportation to consumer countries
around the world. The two also finalized an agreement to develop Irans Kish Island gas reserves
together.[19]
[More information about Omans business activity with Iran.]

DIPLOMATIC:
May 5, 2011: Iranian foreign minister Ali Akbar Salehi met with Omans Sultan Qaboos bin Said and
other Omani officials to discuss enhancing ties.[20]
December 5, 2010: U.S. Defense Secretary Robert Gates met with Omans Sultan Qaboos bin Said to
discuss regional issues, including Iran.[21]
October 11, 2010: Iranian foreign minister Manouchehr Mottaki participated in the Iran-Oman Joint
Economic Cooperation Commission in Muscat. Irans delegation was present to discuss further
expansion of cooperation between the two states.[22]
January 13, 2010: Iranian foreign minister Manouchehr Mottaki met with his Omani counterpart to
discuss enhancing economic ties.[23] President Ahmadinejad responded to the meeting by saying that
the two countries enjoy bilateral relations based on their common views on different regional and
international issues, and added that the Islamic Republic of Iran is ready to boost its relations and
cooperation with Oman in all fields.[24] Furthermore, Ahmadinejad and Bin Alawi suggested that Yemen
should turn to dialogue to end a conflict with Shiite rebels that has complicated efforts to combat al
Qaeda in the troubled Arabian Peninsula country.[25]
August 3, 2009: Sultan Qaboos bin Saeed visited Tehran to discuss bilateral cooperation with Iran.
[26] During the visit which had been delayed due to the June and July political unrest in Iran the
Iranian foreign minister Manouchehr Mottaki and his Omani counterpart, Yousuf bin Alawi Abdullah,
signed a security pact between the two countries. Iran and Oman also agreed on seven memoranda of
understanding on several different issues, including political, economic and cultural cooperation.[27]
April 14, 2009: Iran and Oman began drafting a security agreement. Omani Crown Prince Malik bin
Suleiman al Moammari stated that the Omani government and nation are willing to further expand ties
with the Islamic Republic of Iran in all fields and announced that the pact would be finalized soon.[28]

MILITARY:
June 27, 2011: According to an analysis by U.S.-based defense consultants Frost & Sullivan, the
member states of the Gulf Cooperation Council, including Oman, are set to spend upwards of $122
billion collectively on defensive and offensive weapons systems over the next ten years to counter the
surging Iranian threat.[29]

March 16, 2011: Two Iranian warships docked at an Omani report on a return trip from the
Mediterranean Sea. Members of the Iranian navy also met with Omani governmental and military
officials and foreign diplomats.[30]
February 9, 2011: Iran and Oman held joint war games in the Sea of Oman. The war games goal was to
increase the level of regional cooperation between the two countries and share experience.[31]
February 7, 2011: The Iran-Oman joint military committee held talks. After the meeting the two states
emphasized the need to develop close military cooperation.[32] In this meeting Iranian Brigadier
General Mostafa Salami [Assistant Chief of Staff of the Iranian Armed Forces for Operations Affairs]
stated that decisions were made regarding the meeting with Omani joint chiefs of staff, minister of
defense, commander of the army tri service [sic] and police and customs commander." He added, "it is
expected that the second joint exercise on naval relief and rescue is performed on 9 February in Oman
territorial waters in presence of the naval and aerial forces of two countries.[33]
August 4, 2010: Iran and Oman agreed to provide security for the Strait of Hormuz after a meeting
between their respective defense ministers. The announcement came after a militant group claimed
responsibility for an attack on a Japanese super tanker moving through the Strait of Hormuz.[34]
August 22, 2008: Iranian ambassador to Oman Morteza Rahimi announced that the seventh annual
Iran-Oman joint military committee was set to take place in Muscat the following week.[35]

[1] Kenneth Katzman, Oman: Reform, Security, and U.S. Policy, Congressional Research Service, April 13,
2011,http://www.fas.org/sgp/crs/mideast/RS21534.pdf
[2] Background note: Oman, U.S. State Department, March 7, 2011, http://www.state.gov/r/pa/ei/bgn/35834.htm
[3] Library of Congress Country Studies: Oman, http://lcweb2.loc.gov/frd/cs/omtoc.html
[4] Library of Congress Country Studies: Oman, http://lcweb2.loc.gov/frd/cs/omtoc.html
[5] Foreign Policy: Omans Regional and Global Priorities, Sultanate of Oman, Ministry of Foreign Affairs, July 21, 2011,
http://www.mofa.gov.om/mofanew/index.asp?id=2
[6] Iran touts tour of nuclear sites, despite absence of key critics, CNN, January 15, 2011,http://articles.cnn.com/2011-0115/world/iran.nuclear_1_nuclear-program-... facilities?_s=PM:WORLD (accessed July 20, 2011)
[7] Bin-Alawi to Al-Hayah: Everybody Is Facing Up to the Attempts to Stir Up Sectarian Sedition Between Iran and the Gulf
States. War is Out of the Question. Blocking the Hormuz Strait is Impossible, Al-Hayah, October 13, 2010 (accessed July
20, 2011 via World News Connection)
[8] US Envoy On Iran Policy To Visit Gulf, Associated Press, April 27,
2009,http://www.cbsnews.com/stories/2009/04/27/ap/politics/main4972318.shtml (accessed April 28, 2009)
[9] Cheney To Meet Omans Sultan For Talks On Iran, Voice Of America, March 19, 2008,
http://www.voanews.com/english/archive/2008-03/2008-03-19-voa29.cfm?CFID=178357086&
[10] Iran to export gas to Oman, Press TV, July 10, 2011 http://www.presstv.ir/detail/188379.html (accessed July 19, 2011)
[11] "Iran, Oman to establish joint bank", Tehran Times, January 31, 2010, http://www.tehrantimes.com/index_View.asp?
code=213441
[12] U.S. Treasury Department, Treasury Designates Bank Melli Front Company in New York City, December 17,
2008, http://www.treasury.gov/press-center/press-releases/Pages/hp1330.aspx. U.S. Treasury Department, Treasury Cuts
Irans Bank Saderat Off From U.S. Financial System, September 8, 2006,http://www.treasury.gov/press-center/pressreleases/Pages/hp87.aspx.
[13] "Iran to launch overseas trade center in Oman", Press TV, January 16, 2010, http://www.presstv.ir/detail.aspx?
id=116275&sectionid=351020102
[14] Iran, Oman Discuss Energy Ties, Tehran Times, November 25, 2009,http://www.tehrantimes.com/index_View.asp?
code=208704 (accessed November 29, 2009)
[15] Iran, Oman Sign MoU To Construct Hormoz Petrochemical Unit, Iran Chamber of Commerce, August 7,
2009,http://en.iccim.ir/index.php?option=com_content&view=article&id=1591:iran-oman-sign-mou-to-construct-hormozpetrochemical-unit&catid=103:iran-economy-bulletin
[16] Iran, Oman Start New Round of Gas Talks, Fars News Agency, August 5,
2009,http://english.farsnews.com/newstext.php?nn=8805141356 (accessed September 23, 2009)
[17] Iran, Oman Inaugurate First Joint Company For Foreign Investment, Fars News Agency , May 26,
2009,http://english.farsnews.com/newstext.php?nn=8803051364
[18] Trade Between Iran And Oman Has Increased Says Ambassador Rahimi, Times of Oman, January 31,
2009,http://www.zawya.com/Story.cfm/sidZAWYA20090131052849/Trade%20between%20... (accessed April 28, 2009)
[19] Omani Plants Likely To Process Gas For Iran, Fars News Agency, September 4,
2008,http://english.farsnews.com/newstext.php?nn=8706140721
[20] Omani King Hails Iran's Important Role in Regional Peace, Stability, Fars News, May 5,
2011,http://english.farsnews.com/newstext.php?nn=9002150515 (accessed July 19, 2011)
[21] Robert Gates to discuss Iran with Oman's ruler: official, Reuters, December 5,
2010,http://www.reuters.com/article/2010/12/05/us-oman-usa-gates-idUSTRE6B40MX20101205
[22] Mottaki Working to Expand Iran-Oman Economic Cooperation, Fars News, October 11,
2010,http://english.farsnews.com/newstext.php?nn=8907191391 (accessed July 19, 2011)

[23] "Oman's top diplomat visits Iran for talks", Press TV, January 13, 2010, http://www.presstv.ir/detail.aspx?
id=116042&sectionid=351020205
[24] "Ahmadinejad: Iran, Oman Enjoy Interrelated Relations", Fars News Agency, January 13, 1010,
http://english.farsnews.com/newstext.php?nn=8810231450
[25] Iran, Oman urge talks to end Yemen crisis, Reuters, http://uk.reuters.com/article/2010/01/13/uk-iran-yemenidUKTRE60C22U20100113 (accessed July 19, 2011)
[26] Envoy Views Omani Kings Iran Visit As Milestone In Tehran-Masqat Ties, Fars News Agency, August 3, 2009
[27] Iran, Oman Ink Seven MoUs On Mutual Cooperation, IRNA, August 6, 2009,
http://english.irib.ir/news/political/item/46790-iran-oman-ink-7-mous-to-boost-mutual-cooperation
[28] Iran, Oman Prepare Security Pact, Fars News, April 14, 2009, http://english.farsnews.com/newstext.php?
nn=8801251297
[29] Raytheon gets $1.7 billion Patriot deal, UPI, June 27, 2011, http://www.upi.com/Business_News/SecurityIndustry/2011/06/27/Raytheon-g... (accessed July 18, 2011)
[30] Iranian Fleet of Warships Dock in Omani Capital, Fars News, March 16,
2011,http://english.farsnews.com/newstext.php?nn=8912250751 (accessed July 19, 2011)
[31] Iran and Oman hold joint military drills, Mehr News, February 9, 2011,http://www.mehrnews.com/en/newsdetail.aspx?
NewsID=1250170 (accessed July 19, 2011)
[32] Iran, Oman discuss military ties, Press TV, February 7, 2011, http://www.presstv.ir/detail/164068.html(accessed July 19,
2011)
[33] Iran,Oman Continue Joint Military Talks, ISNA, February 7, 2011, http://isna.ir/ISNA/NewsView.aspx?ID=News1710479&Lang=E (accessed July 20, 2011)
[34] Iran and Oman to provide security for the Strait of Homuz, Gulf News, August 4,
2010,http://gulfnews.com/news/gulf/oman/iran-and-oman-to-provide-security-for-the-strait-of-homuz-1.663868 (accessed
July 19, 2011)
[35] Iran-Oman joint military committee to meet this week, Mehr News, August 22, 2008,
http://www.mehrnews.com/en/NewsDetail.aspx?NewsID=736502

Website : http://www.irantracker.org/foreign-relations/oman-iran-foreignrelations