Oman in the Eye of the Storm: What do the drone attacks mean for the Gulf and the global economy?

It's a sight familiar to those who follow the tensions in the Strait of Hormuz: an oil tanker engulfed in flames. But this week's attack was different. For the first time, Iran's Revolutionary Guard has successfully used a drone boat – a so-called kamikaze vessel – against a target in the Oman Gulf. It doesn't just affect shipping; it sends shockwaves through the entire region and forces us to take a closer look at a country that is often overlooked: Oman.

The impossible balancing act

For decades, Oman has played the role of the neutral mediator in the Gulf. While Saudi Arabia and the UAE have escalated the conflict with Iran, Muscat has kept its doors ajar. But with the recent attacks – first on a "shadow tanker" with links to Israel, and now on a fuel tanker – it's becoming more difficult for the Sultanate to maintain its balance. Several of the targeted ships were sailing under flags of convenience, but shipping in Omani waters has been hit, and everyone feels it. I've spoken with several captains who are now considering bypassing the most exposed routes, even if it costs time and money.

Economic fallout: From insurance to flight tickets

For businesses, the calculation is simple: every time a drone or missile flies over the Gulf of Oman, the price of crude oil and insurance premiums go up. Oman Air, which has routes to both Asia and Europe, can expect longer flight times and more expensive overflight rights if the airspace is deemed dangerous. But it's not just aviation that's affected. The entire logistics chain for container ships and tankers is under pressure. We're talking about a region through which 20% of the world's oil passes. If insurance companies pull the plug, we could see a bottleneck that would be felt at the petrol pump in Ireland.

Sport as a contrast

While the world holds its breath, the Oman national football team is trying to focus on the pitch. In recent years, the team has made its mark in Asian football and dreams of qualifying for the World Cup. Right now, however, they are training in the shadow of military actions. Meanwhile, the Oman national cricket team is preparing in Muscat – cricket is practically a religion in the Gulf, and Oman has surprised many with their performances in T20 tournaments. Sport is often used as a form of soft power, but right now, it's more about keeping the players away from the news of drones and oil prices.

When pop culture meets geopolitics

It's thought-provoking that when people in Ireland search for "Oman" these days, both news about drone attacks pop up – and also Omanyte, the little fossil Pokémon. It might sound absurd, but it shows the diverse interests attached to a name. For some, Oman is a geopolitical flashpoint, for others a holiday dream (Oman has reopened to tourists), and for younger generations perhaps just a Pokémon that can be revived from a fossilised piece of amber. But beneath all the digital noise lies a reality where people and ships are in danger.

What's at stake for Oman?

To understand what Oman stands to lose, we need to look at the country's strategic assets:

• The Strait of Hormuz: The world's most important choke point for oil exports.
• Diplomatic neutrality: Host to secret negotiations between the US and Iran.
• A growing tourism sector: Muscat and Salalah are attracting more and more European travellers.
• Sporting ambitions: Football and cricket as national pride and soft power.

The question is how long Oman can maintain its neutral course. The government in Muscat has already condemned the attacks, but at the same time invited dialogue. It's a difficult dance: on one hand, it must maintain its relationship with Iran; on the other, it must protect its own waters and the interests of its Western allies. I expect we will see increased maritime cooperation between Oman and Western naval forces – but discreetly, as Oman always does things. Because even if the drones are making a racket, the real power struggle often takes place behind closed doors.