Al-Monitor Gulf: Oman reenters diplomatic arena to host US-Iran talks

Newsletter: Gulf

Sebastian Castelier

Apr 14, 2025

Welcome back to Al-Monitor Gulf.

Weeks after Saudi Arabia played a pivotal role in facilitating indirect talks between Moscow and Kyiv, Oman stepped on to the diplomatic stage, hosting the first round of US-Iran talks this past weekend. With other Gulf countries keen on regional de-escalation, all eyes turned to Oman’s efforts as they unfolded.

Thanks for reading,
Sebastian

Leading this week: Dialing down tensions

An Iranian woman walks by the anti-US murals on the walls of the former US Embassy in downtown Tehran, Iran, on April 11, 2025. (HOSSEIN BERIS/Middle East Images/AFP via Getty Images)

Once again, the Gulf region has emerged as a pivotal mediating hub for the Donald Trump administration, stepping in to help navigate one crisis after another. Over the weekend, the sultanate of Oman hosted high-level, indirect talks between the United States and Iran, attended by US Middle East envoy Steve Witkoff and Iranian Foreign Minister Abbas Araghchi. With Omani mediation, the discussions build on the country’s long-standing role as a neutral broker — an identity carefully cultivated over decades under the late Sultan Qaboos bin Said Al Said.

Here are some key elements about the ongoing talks:

⮕ What did the talks focus on? Talks centered on Tehran’s nuclear program, sanctions against Tehran, regional tensions and prisoner exchanges, an Omani source told Reuters. The indirect talks — held on the outskirts of Muscat — lasted two hours, during which Witkoff and Araghchi briefly spoke directly. Both the US and Iran separately described the meeting as “constructive.”

⮕ Why Oman? While the UAE recently made headlines by delivering Trump’s letter to Iran’s supreme leader, Oman’s role as a mediator stretches back much further. The sultanate has long served as a discreet and trusted venue for US-Iran engagement — most notably hosting the secret diplomatic channel that ultimately paved the way for the Obama-era Iran nuclear deal.

⮕ The talks are set to continue. Oman will mediate a second round of talks on Saturday in Rome. Iran said a new nuclear deal could be agreed upon if the US shows “willingness.”

⮕ What’s more? Gulf countries are paying close attention to the US-Iran dialogue as they seek to avoid regional instability that would be detrimental to economic diversification plans. The Gulf hopes to secure a peace dividend from helping to dial down regional tensions.

Economic brief

🤝 Strengthening US-Gulf ties

Saudi officials are preparing for Donald Trump’s first foreign trip to the region next month. This past week, Saudi Foreign Minister Prince Faisal bin Farhan was in Washington to discuss bilateral ties and lay the groundwork for Trump’s visit, which will be a win for Riyadh, enhancing its “prestige and soft power,” as described by political commentator Ali Shihabi.

In other Gulf-US developments:

On Wednesday, the US Treasury will release data on foreign holdings of US debt for February 2025. The data will provide a closer look at whether Gulf countries remain committed to the US sovereign debt market, where the region has historically parked hundreds of billions worth of petrodollars, or have begun pivoting toward other assets.
On the energy front, US Energy Secretary Christopher Wright began this past week a two-week trip to Saudi Arabia, Qatar and the United Arab Emirates. The US official is expected to meet with several Gulf leaders, visit energy production sites, and discuss the increase in global oil supply and Trump’s efforts to stop Iranian oil exports, among other topics.
The visit occurs amid Gulf interest to boost investments into the US energy sector. UAE’s Mubadala Energy agreed on Thursday to acquire a 24% stake in New York-based Kimmeridge. The company owns assets in the US natural gas industry.

🚛 “Global trade superpower”

Amid Trump’s global tariff battles, Gulf countries, and in particular the UAE, are doubling down on economic openness and globalization, with Abu Dhabi hoping to rise as a “global trade superpower,” former UAE official Tareq Alotaiba told Semafor. In an effort to remove trade barriers, the UAE announced on Thursday the start of talks for a trade agreement with the European Union. The UAE also signed a trade deal with the Republic of the Congo earlier this past week.

In the context of trade tensions with Washington, China is on the offensive to deepen ties with GCC countries and the Global South. The Chinese commerce minister called his Saudi counterpart on Thursday to discuss US tariffs and bilateral ties between the two nations.

Photo of the week

Tesla’s official launch ceremony in Riyadh on Thursday (Fayez Nureldine/AFP via Getty Images)

US electric vehicle maker Tesla opened its first showroom in Riyadh on Thursday, followed by the launch of charging stations in Riyadh, Jeddah and Dammam the next day. Electric mobility remains in its early stages in Saudi Arabia, with just 101 charging stations nationwide — and none along the main east-west highway — despite ambitious plans to install 5,000 chargers within the next five years.

Tesla will face several challenges in Saudi Arabia as it expands into the market. One major issue is the Gulf’s extreme heat, which can drain electric vehicle batteries more quickly than in milder climates. The company may also encounter stiff competition from Chinese EV makers, particularly BYD, which opened a showroom in Riyadh in 2024.

Additionally, Tesla may come under growing pressure to localize its production. “We do not want a showroom; we want a factory,” local economist Mohammed Al-Qahtani told Agence France-Presse. The Saudi government has been actively pushing to develop a domestic car manufacturing industry as part of its broader effort to reduce reliance on imports and accelerate economic diversification.

Figure of the week: 17.1 billion

Forbes released its 2025 Billionaires List earlier this month, naming 25 billionaires from the Gulf region. Topping the regional ranking is Pavel Durov, founder of the messaging app Telegram. A Russian by birth, Durov became an Emirati citizen in 2021 and now has an estimated net worth of $17.1 billion. In addition to Durov, the list includes 15 Saudi billionaires, five other Emiratis, two Qataris and two Omanis.

But there’s an obvious omission: Gulf rulers are absent from the list. The wealth of Gulf ruling families is often opaque, with assets closely tied to state holdings, making it difficult to separate personal fortunes. For instance, Saudi Arabia’s Crown Prince Mohammed bin Salman is known to own a $500 million yacht and holds the ultimate ownership of a $300 million chateau in France through a network of shell companies.

Long game: UAE responds to allegations at ICJ

The UAE’s role in Sudan since a civil war broke out in the country in 2023 was scrutinized Thursday during a hearing at the International Court of Justice in The Hague. Sudan accused the Gulf country of being “the primary driving force” behind what Khartoum calls a genocide against the Masalit community due to Abu Dhabi’s alleged backing of the Rapid Support Forces. On Thursday, Sudan’s acting justice minister, Muawia Osman, accused Abu Dhabi of shipping arms to the RSF, and facilitating killings, rapes, forced displacements and lootings.

Here are some key takeaways:

What is Sudan asking for? Sudan requests “reparations,” including compensations, and wants the UAE to stop its alleged support of the RSF. Any ICJ ruling in favor of Sudan would be final and binding, but the court has no means to ensure compliance.
How did the UAE respond to Sudan’s allegations? The Gulf country has repeatedly denied supporting the Sudanese paramilitary group. At the ICJ hearing, Emirati Foreign Ministry official Reem Ketait said that the African state’s allegations “could not be further from the truth” and are “at best misleading and at worst pure fabrications."
Is the dispute admissible to the ICJ? Abu Dhabi’s key legal defense is to push back against the ICJ’s power to rule on this case. Indeed, when it joined the Genocide Convention in 2005, the UAE rejected Article IX of the treaty, which grants the ICJ jurisdiction to resolve disputes between states. Sudan argued the reservation is “invalid.” Other states, including the US and China, have also opted out of Article IX.
What’s next? A decision is expected by the end of the month. If the ICJ dismisses the case, Sudan has indicated it could take the case to other regional and international courts.

Read more: US, Saudis urge Sudan peace talks

The Middle Eastʼs leading independent news source since 2012

Search