Oman's new ports give Iran a covert route around Hormuz sanctions
Oman has expanded the Duqm, Salalah and Sohar ports, creating a low-cost alternative to the Strait of Hormuz that lets Iranian trade slip through U.S. sanctions.
Oman’s recent port upgrades at Duqm, Salalah and Sohar have reshaped Gulf shipping by diverting cargo that once passed the Iranian-controlled Strait of Hormuz. A $300 million expansion raised Salalah’s capacity to 6.5 million TEUs and lifted early-2026 revenues by 20% to $132 million, while Sohar’s handling grew 55% and links to the Hafeet railway into Saudi Arabia. Duqm attracted more than $7.5 billion in new industrial, logistics and energy commitments.
These facilities sit outside both Hormuz and Bab el-Mandeb, offering cheaper insurance and more reliable transit, which Iran can exploit to evade the U.S. “Operation Economic Outcast” sanctions package. In August 2026, Oman and Iran finalized a preferential trade agreement and signed 18 memoranda covering customs, energy and logistics, pushing bilateral trade above $5 billion. Analysts argue that the United States must demand real-time cargo-origin transparency from Omani operators or impose secondary sanctions, while also supporting competing corridors in the UAE, Saudi Arabia and India.
Why it matters
The Omani ports provide Iran a loophole that could blunt U.S. pressure on its economy and regional behavior.
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