The agreement was signed by Iranian Foreign Minister Mohammad Javad Zarif and Omani Interior Minister Hamud bin Faisal bin Said al-Busaidi in Muscat today.
The Iranian foreign minister is in Oman on a one-day visit to the Arab country.
According to the agreement Tehran and Muscat agreed on demarcation of 450 kilometers of their common sea borders.
Iran and Oman had demarcated their maritime border in Strait of Hormuz in the 1970s.
During the meeting, Zarif said Iran and Oman ‘have very good relations and this agreement demonstrates the kind of ties Iran is keen to have with all its neighboring countries, especially in the Persian Gulf”.