The article explores how oil price shocks affect Oman's economy, focusing on government revenue and GDP. The researchers used a model to analyze data from 1989 to 2016 and found that oil price shocks significantly impact government revenue and GDP. These shocks explain a large portion of the variation in petroleum revenue and GDP. Government revenue is the key factor influencing government expenditure in response to oil price fluctuations. The Omani government uses reserve funds and debt to mitigate the impact of oil price changes. Additionally, the study investigates the relationship between fiscal and trade balances in Oman, with the fiscal balance heavily dependent on oil export revenue.