Oman, coached by Talib Hilal, lost in the final to Iran 0-1 on penalties after the teams were tied 3-3 at the end of extra-time.
Earlier in the tournament, Oman remained unbeaten to top Group A with three back-to-back victories over Bahrain (5-2), Lebanon (5-3) and Qatar (7-1).
In the semifinal, Talib's boys edged out Palestine 1-0.
Talib told Muscat Daily from Iran, “It was disappointing to lose the final on penalties. I feel we were the better team in that game. I am happy with the way we played throughout the event and the side has emerged as one of the strongest teams in West Asia.”
He added, “I am especially pleased with the performance of our two players, Khalid al Araimi and Munther al Araimi.”
Khalid finished as the tournament's top-scorer with nine goals.