The conflict, which began with joint Israeli and U.S. strikes on Iran on April 28 and by its 40th day had evolved into a phase largely confined to ceasefire negotiations, has left a profound impact on Gulf geopolitics. Beyond the humanitarian and economic costs of the war, the most significant global consequence has been the effective restriction of transit through the Strait of Hormuz. This has triggered volatility in energy markets and made the procurement and transportation stages of supply chains for certain key commodities and finished goods more vulnerable.
In the postwar period, alongside reconstruction efforts and the adaptation of the regional security architecture to a new risk environment, the development of logistical corridors alternative to the Strait of Hormuz is expected to gain prominence. In this context, Oman’s integration into connectivity projects spearheaded by Türkiye, particularly the Hejaz Railway and Development Road initiatives, holds the potential to add an economic dimension to the country’s long-standing foreign policy approach centered on mediation and regional stability.
Oman’s mediation role and regional positioning
Oman has long served as a mediator both between the United States and Iran and in intra-Gulf disputes. In the context of Yemen, it has also emerged as an indirect facilitator in communication channels between Saudi Arabia and the United Arab Emirates (UAE) on one side and the Houthis on the other. As a result, the country is often referred to as the “Switzerland of the Middle East.”
Although the growing capabilities of nonstate actors in Yemen by the end of 2025 occasionally challenged this role, Oman maintained its diplomacy-focused approach and refrained from becoming directly involved in conflicts. In his public statements, Foreign Minister Badr al-Busaidi has repeatedly emphasized that regional tensions should be managed not through exclusionary security approaches, but through inclusive dialogue and cooperation.
Nevertheless, Oman has not been entirely insulated from regional conflicts. During the recent escalation in tensions, some of the country’s strategic sites were subjected to limited attacks, resulting in partial damage, particularly at the ports of Duqm and Salalah. Despite this, Oman has continued to work toward preventing further escalation and has remained actively engaged in diplomatic efforts aimed at securing a ceasefire.
Post-Hormuz era: Search for connectivity
Disruptions in the Strait of Hormuz have created significant vulnerabilities in global supply chains, particularly for Asian economies. Delays affecting not only energy supplies but also the transportation of numerous strategic goods have once again underscored the importance of developing alternative logistical routes.
In this context, alongside military alliances and geopolitical alignments, infrastructure projects capable of reshaping global trade routes are also gaining prominence. The Hejaz Railway project, which Türkiye aims to revive through Syria, Jordan and Saudi Arabia, is regarded as a key component of this emerging connectivity vision. The idea, articulated by Transport and Infrastructure Minister Abdulkadir Uraloğlu, of extending the project to Oman in later phases carries the potential to establish a new logistical backbone linking the Gulf and the Eastern Mediterranean.
Although Oman does not currently have an operational railway line, attention has turned to the Hafeet Rail project, developed in partnership with the United Arab Emirates, which will connect the city of Al Ain with the port of Sohar. In addition to this strategic step, the country aims to expand its national railway network to between 2,135 and 2,244 kilometers over the next decade. Integrating these extensive plans with the Hejaz Railway project would position Oman as a highly critical and strategic player in the global logistics market.
This route represents not only the reconstruction of a cultural and historical transportation corridor but also an alternative overland trade route to the Strait of Hormuz. This development could enhance regional trade security while also expanding Oman’s logistical and diplomatic capacity.
The Development Road and Oman’s economic integration
Oman’s interest in connectivity projects is not limited to the Hejaz Railway. The country’s willingness to participate as an investor in the Development Road Project, which is planned to extend from Iraq’s Basra Gulf to Türkiye and onward to Europe, is seen as part of its broader regional economic integration strategy. Through this partnership, Oman has become the third Gulf country, after Qatar and the UAE, to formally express interest in and provide financial and strategic support for the Development Road Project.
Oman’s investments in the Development Road Project are expected to directly support the country’s policies of economic diversification beyond the oil sector, in line with its Vision 2040 strategy. In previous periods, low oil prices caused significant budgetary pressure across many Gulf countries, particularly Saudi Arabia. Through successful fiscal reforms, Oman reduced its budget breakeven oil price from around $86 in 2020 to $55 in 2024. Despite this fiscal relief, the government in Muscat continues to seek to reduce the economy’s dependence on hydrocarbons, viewing logistics and infrastructure projects as one of its most important strategic assets.
Beyond its economic dimension, this investment also carries an important geopolitical component. Oman’s inclusion in the Development Road Project is expected to contribute to the strengthening of Iraq’s central government and institutional structures, while narrowing the operational space and capabilities of nonstate armed actors. From this perspective, investing in the project would provide Oman with significantly greater political leverage and diplomatic influence at the regional level.
In addition, the emergence in September 2025 of a proposed oil pipeline project between Iraq and Oman that could bypass the Strait of Hormuz signals a deepening of energy and logistics cooperation between the two countries.
These developments indicate that Oman is evolving from a purely mediating diplomatic actor into one of the foundational elements of regional infrastructure and trade architecture. Oman has brought its historically established mediation role back into prominence during the 2025–2026 period. However, recent conflicts have shown that this role alone is not sufficient to ensure regional stability, and that economic and infrastructural integration is just as critical as diplomacy.
In this context, the development of alternative corridors to the Strait of Hormuz has become one of the most important strategic priorities of the postwar period. Türkiye-led projects such as the Hejaz Railway and the Development Road offer Oman new opportunities both for economic diversification and for the institutionalization of its diplomatic influence.
This integration could transform Oman’s regional role from that of a crisis-managing actor into a constructive power center that actively shapes regional connectivity.
