Both the US and Iran announce that they are committed to protecting your territorial integrity. Right now, Iran shares complete control of the Strait of Hormuz with Oman, and has no interest in allowing a third party to share that control. The Strait is also crucial to the US for its oil imports and, since US-Iran relations are so tense, the US knows that having Oman as a strong ally with control of part of the Strait is critical to the US economy. Both states condemn the Emirati claim and agree to back Oman.
Try diplomacy one more time | Send another envoy. With a stronger, clearer military backing, perhaps the UAE will finally back down. |
Suggest the Sultan invades the UAE | Clearly they will not back down. It is best to act pre-emptively and gain a military edge. |
Suggest ceding the territory | It is only half of Musandam, you will retain some access to the Strait, and you will avoid any further confrontation with your wealthier, powerful neighbor. |