Oman gains strategic ground as Gulf routes come under strain, IMF says
The IMF says Oman is benefiting from war-related disruptions in the Gulf region due to its strategic location outside the Strait of Hormuz. Oman's economy is expected to perform relatively better than its neighbors, with higher oil prices and mild inflation.
Oman is emerging as a stronger economy compared to its Gulf neighbors due to war-related disruptions in the region, according to the International Monetary Fund. The conflict has disrupted trade, energy, and transport links across the Gulf, cutting regional growth forecasts to 1.4% in 2026. Oman's sea access lies outside the Strait of Hormuz, limiting trade and production disruptions. Higher oil prices are expected to improve Oman's current account and fiscal balance. The IMF projects mild inflation in Oman, with a small upward revision of 0.2 percentage points. However, the Fund warns that a prolonged conflict could deepen the damage across the region.
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