Oman has made significant strides in economic reform, climbing 19 places to rank 39th globally in the 2026 edition of The Heritage Foundation’s Index of Economic Freedom. This improvement, second only to Argentina, reflects Oman’s ongoing economic expansion under the Oman Vision 2040 framework.

Despite this progress, recent discussions between Oman and Tehran regarding the imposition of tolls on shipping through the Strait of Hormuz could jeopardize the country’s promising future. While Oman has cooperated with the United States as a mediator in the regional conflict, it has also shown openness to Iran’s toll proposals.

Unlike Iran, whose economy has suffered from systemic mismanagement despite vast oil and gas reserves, Oman’s reforms have positioned it for greater freedom, opportunity, and prosperity. Observers suggest that for the benefit of its people, Oman should pursue deeper regional cohesion against the Islamic Republic.

Ten years ago, after the implementation of Barak Obama’s JCPOA, Tehran experienced inflation around 7%, but its economy has since declined sharply. Oman’s recent economic gains stand in contrast to this backdrop.

Sources:

  • Fox News Latest, "Iran’s Strait of Hormuz scheme could derail one Gulf nation’s bright future", July 9, 2026
  • The Heritage Foundation’s Index of Economic Freedom 2026