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Market News: Pakistan Has Secured The Safe Passage Of Liquefied Natural Gas (LNG) Shipments In An Agreement With Iran
Market News: Sources Say Ukraine Launched A Drone Attack On Russia's Lukoil Perm Refinery On Wednesday, Causing A Fire
ABN AMRO: The European Central Bank Is Unlikely To Raise Interest Rates Above 2.50%, With Uncertainties Remaining
Polish Prime Minister Tusk: The United States Is Willing To Participate In The Investigation Of The Missile
Ministry Of Industry And Information Technology: China's Software Industry Generated RMB 7,718.2 Billion In Revenue In The First Half Of The Year, An Increase Of 9.5% Year-on-Year
Polish Prime Minister Tusk: There Is No Reason To Believe That Poland Was The Target Of The Falling Missile
The USD/JPY Pair Briefly Fell 70 Points Before Quickly Rebounding, And Is Currently Down About 0.4% At 162.75
The EU Has Already Disbursed €3.47 Billion To Ukraine Under A €90 Billion Loan Program Supporting Ukraine
Market Sources: Agricultural Market Sources Reported That Ukrainian Drones Struck Sunflower Oil Export Facilities At Russia's Taman Port, Located In The Kerch Strait
The EU Says The Latest Funding For Ukraine Will Be Used For Drones, Missiles, Air Defense Systems And Fighter Jets
Japanese Prime Minister Sanae Takaichi: We Will Seek Ways To Allow Japan More Flexibility In Adjusting Sales Tax Rates
Japanese Prime Minister Sanae Takaichi Plans To Reduce The Food Sales Tax To 1% Starting In April 2027, With A Two-year Grace Period
Japanese Prime Minister Sanae Takaichi: We Will Review Potential Sources Of Revenue, Such As Foreign Exchange Reserves, Non-tax Revenue, And Spending Reforms
The Russian Ministry Of Defense Announced That It Has Occupied Chernyshevka In The Donetsk Region Of Ukraine, Malaslobidka And Mokhlitsky In The Sumy Region, And Yurchenkov In The Kharkiv Region
Japanese Prime Minister Sanae Takaichi: We Will Ensure Market Confidence By Providing Funding For Temporary Tax Cuts Without Resorting To Issuing Government Bonds

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Gulf nations, fearing US-Iran war, task Oman to press Tehran for vital concessions, shifting its diplomatic role.
For years, Oman's quiet diplomacy with Iran was an outlier in the Gulf, viewed with suspicion by its neighbors. Muscat’s insistence on keeping channels open to Tehran, even during peak regional tensions, often isolated it within the Gulf Cooperation Council (GCC). Some partners saw this as naive; others, as unhelpfully independent.
That perception has dramatically changed. By January 2026, with the threat of a US-Iran conflict looming, Gulf monarchies were actively lobbying the White House to support talks in Muscat. What was once seen as a weakness is now considered an essential tool for regional stability.
The urgency of this new reality crystallized in mid-January 2026. As fears of a US strike on Iran grew amid Tehran's crackdown on protests, a senior Saudi official confirmed a "frantic, last-minute" diplomatic push. Led by Saudi Arabia, Qatar, and Oman, the effort aimed to persuade President Donald Trump to stand down and give Iran a chance to de-escalate.
This was no symbolic gesture. The move followed a temporary drawdown of US personnel from Qatar's Al-Udeid Air Base and a flurry of security warnings from regional embassies. Gulf leaders were scrambling to prevent a conflict they feared would spiral out of control.
The region's leaders now recognize that a US-Iran war would be devastating for everyone involved. The consequences would be immediate and severe:
• Economic Shock: Oil markets would convulse, and investor confidence would evaporate.
• Direct Retaliation: Iranian counter-strikes would almost certainly target Gulf states.
Vivid memories of the 2019 strike on Saudi oil facilities and Iran's June 2025 attack on Al-Udeid—which followed US strikes during a 12-day Israel-Iran war—underscore how quickly escalation can cross borders.
By 2026, even Saudi Arabia, Iran's traditional rival, shifted its stance from spoiler to a cautious stakeholder in de-escalation. The debate within the GCC was no longer whether to engage with Iran, but how to keep Washington and Tehran from triggering a war. This marks a profound evolution in how the Gulf views Oman’s unique diplomatic role.
Oman's central role in this crisis is no accident. On January 10, 2026, Omani Foreign Minister Badr bin Hamad Al Busaidi visited Tehran, meeting with President Masoud Pezeshkian, Foreign Minister Abbas Araghchi, and Supreme National Security Council Secretary Ali Larijani. The visit occurred as traditional US-Iran channels were failing and Trump was openly threatening military action. Days later, Trump suggested Iran wanted to negotiate, a sign that messages were flowing through Muscat.
This is familiar ground for Oman. The country's policy of "positive neutrality"—a doctrine rooted in non-intervention and dialogue—has produced results before. It was Oman that:
• Hosted secret US-Iran talks in 2013, paving the way for the 2015 nuclear deal.
• Mediated prisoner releases and conveyed critical messages during past crises.
This approach is reinforced by Oman's internal culture of pluralism and its history of navigating relationships with larger, more volatile neighbors.
However, Oman's past success highlights the limits of its current approach. Mediation is effective only when both sides are incentivized by restraint. Today, Iran increasingly acts as if escalation is a tolerable, if not useful, strategy.
Tehran continues high-level uranium enrichment, restricts international inspections, and frames its regional policy around expelling the United States and Israel from the Middle East. While this posture serves an ideological purpose, it is strategically fragile. It misjudges the current risk tolerance in Washington and Jerusalem and ignores how exposed the Gulf would be in a wider conflict.
This is where Oman’s role must evolve. Simply passing messages is no longer enough. Muscat is one of the few capitals whose warnings Tehran takes seriously, giving it both unique influence and a heavy responsibility.
The trust that allows Oman to carry messages from the US must now be used to deliver a tougher one to Iran: its current trajectory is unsustainable. A major regional war would inflict lasting damage on everyone, including Iran itself.
This warning carries more weight coming from a Gulf neighbor focused on regional survival than from Washington or Israel. Even Iranian diplomats have acknowledged this reality. In mid-January, Iran’s ambassador to Saudi Arabia confirmed contacts with Saudi, Qatari, and Omani officials, warning that any conflict would have catastrophic regional effects. Tehran welcomes dialogue when it prevents escalation; it must now be convinced that dialogue also demands concessions.
A path to compromise still exists. Iran could scale back from its highest enrichment levels, restore full access for IAEA inspectors, or signal regional restraint. These moves would build trust without requiring an ideological surrender. In return, the United States can offer meaningful sanctions relief and avoid maximalist demands. These are the kinds of transactional steps Oman has successfully brokered in the past.
But this outcome is unlikely if Muscat remains a passive facilitator. The GCC states that once doubted Oman now depend on it as a firewall. This backing gives Muscat unprecedented political cover to speak bluntly, firmly, and privately in Tehran.
For decades, Oman thrived in the shadows as a discreet messenger. Today, discretion without direction is not enough. The risk is no longer diplomatic awkwardness but war by miscalculation. To remain credible and keep the region intact, Oman must use its influence not just to relay messages, but to shape Iran's choices. Its quiet role has always been valuable; now, it must be consequential.
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