Over the toilet is nasty, for flush spray, and too far from the sink.

can you mount it to the right of the sink? or above the sink to the right of the electrical outlet?

Yes, fold it over the bar and mount it to clear the surface... and then some.

^^^This

OK, just did a deep dive into towels above toilets, saw the plumes, read about the spread even with the lid closed. This bathroom has no ventilation and is so small I don't think any space is safe from viruses. Nasty. But, I will not hang the towel above the toilet... even though I loved the idea of a towel covering some more of this ugly tile!

@Maureen's picture looks good and would make sense in a powder room, but in this small primary bath, the 24" vanity is my whole surface space for toothbrushing, putting in contacts, applying makeup. I'm a long limbed gal and feel crushed against that wall already. The towel hanging there is going to be in the way.

I have two hooks going across from the toilet for bath towels - no room for three. But we really hang our bath towels up in the bedroom because this bathroom has no ventilation and things don't dry. I also hate the idea of guests drying their hands on my bath towel. So perhaps I just put hand towels on the hooks across from the toilet?

No to anything on top of the toilet. I have to lean across there to turn the shower on. Plus, I don't want any extra decor in this space. Too claustrophobic.

(Would be great if guests didn't use this bathroom, but the powder room is so small and my Dad's lets are so long, he can't fit on the toilet in the powder room! My legs are so long the last time I sat on the powder room toilet I accidentally stepped on the door stop and took it right off the baseboard. Small space problems.)

A ring towel holder is very close to the wall, that may be the best bet. And then find another spot for the 9" towel bar?

Could you do a double bar on the blank wall? We did that in two bathrooms, with bath towels on the back bar and hand towels on the front. In fact, in one bathroom we had two double bars, one above the other.

Towels as far from the toilet as possible

Art above the toilet

Towels on hooks across from the toilet

Full Height shower curtain and liner.

this:

love this design

you could hang your towel bar over on this wall too. Put a shelf (s) over the toilet.

or a hanging cabinet (amazon, wayfair, target, PB has some decent ones)

I can't touch this...........: )

Matching or not, that hand towel bar seems too large for your space constraints. Form follows function. IMO, a hook or towel ring to the right of the sink makes the most sense. I recognize that you have concerns about that option, but I don't think you are going to find a perfect solution. Alternate solution....add an additional hook across from the toilet (if you don't mind the drippy distance) and pull out a holder with disposable towels when you have guests.

A lot of bathrooms have hand towels next to outlets, so you could put it to the left of your mirror if desired and still have all the other spaces as you want them.

@JAN MOYER - Now you have MC Hammer stuck in my head!