Rubio meets Oman’s ambassador amid Trump threats and Iran trade deal

U.S. Secretary of State Marco Rubio met with the ambassador of Oman to discuss bilateral cooperation amid heightened tensions in the Middle East. This meeting comes shortly after President Donald Trump threatened military action against Oman, escalating the already fraught situation regarding the Strait of Hormuz. The backdrop to these developments includes Iran’s recent finalization of a trade agreement with Oman, highlighting Muscat’s continuing economic engagement with Tehran. The confluence of these diplomatic and military tensions appears to have impacted market expectations around potential U.S.-Iran peace talks. Key Takeaways Rubio’s meeting with Oman’s ambassador suggests a focus on stabilizing relations despite recent threats from Trump. The finalized Iran-Oman trade deal appears consistent with deepening ties between the two nations, potentially complicating U.S. diplomatic efforts. Market activity suggests a decreased likelihood of Mojtaba Khamenei attending U.S.-Iran peace talks by the end of 2026, reflecting increased regional tensions. What to Watch Observers should monitor any announcements from the White House or State Department regarding direct U.S.-Iran talks, as...