FILE- Sultan Haitham bin Tariq. (AFP)
Sultan Haitham bin Tariq Al Said was officially welcomed by Raisi at the capital's Saadabad Palace, state media said.
The sultan's visit followed an official invitation by the Iranian president. It is his first visit to Iran since he ascended the throne.
Iranian television said Sultan Haitham headed a large delegation including the ministers of defense, foreign affairs, economy and investment.
Oman has a long record of being a key broker between Iran and the West, amid volatile regional tensions. Belgium and Iran exchanged prisoners on Friday after mediation by Omani officials.
Oman also recently hosted rounds of talks between Iran and its rival Saudi Arabia, facilitating an agreement to resume diplomatic relations after a seven-year rift.
State-run IRNA news agency said investment, oil and gas issues will be discussed during the Omani’s ruler's stay in the Iranian capital.