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Oman walks a diplomatic tightrope over Strait of Hormuz fees, creating a ‘blind spot’ for markets

CNBC · Jul 3, 2026, 7:59 AM · Also reported by 4 other sources

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  • Oman's reputation for neutrality has earned it the nickname the "Switzerland of the Middle East."
  • Oman has said that any agreement will comply with international law, although the prospect of a financial system on a waterway that typically handles around 20% of the world's oil has sparked alarm.

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Oman's reputation for neutrality has earned it the nickname the "Switzerland of the Middle East."

But the country, which sits to the south of the Strait of Hormuz, is employing a deliberately opaque diplomatic strategy in discussions about tolls for the critical waterway, and markets have a "blind spot" for what could happen next, analysts tell CNBC.

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