Iran’s ongoing military campaign against U.S. facilities in the Gulf, part of its horizontal escalation amid the broader U.S.-Iran conflict, drives market focus on Kuwait. Kuwait hosts major American bases, including Ali Al-Salem and Ahmad Al-Jaber airbases, which Iranian forces have repeatedly struck with missiles and drones since February 2026. The most recent confirmed actions occurred in early September 2026, when Tehran targeted those sites in retaliation for U.S. strikes near the Strait of Hormuz, prompting Kuwaiti air defenses to intercept incoming projectiles and the government to condemn the attacks at the UN. Kuwait has faced repeated incidents in June and August as well, with no reported fatalities in the latest rounds but damage to infrastructure. Trader assessments reflect the risk of further strikes before key September resolution dates, tempered by Kuwaiti interception capabilities, U.S. deterrence signals, and any diplomatic pauses in the conflict.