Iran has repeatedly struck Kuwait with missiles and drones since the US-Iran conflict escalated in February 2026, targeting US military sites such as Ali Al Salem Air Base, Kuwait International Airport, and infrastructure like power stations and oil facilities in retaliation for American operations. Kuwait, hosting US forces but not a direct combatant, has intercepted multiple barrages, condemned the attacks as sovereignty violations at the UN, reduced Iranian embassy staff, and declared diplomats persona non grata. Recent October 2026 exchanges, linked to US strikes on Iranian radar and launchers amid Strait of Hormuz tensions, have driven trader focus on escalation risks, Gulf states' air defense upgrades, and potential for further Iranian leverage plays or diplomatic pauses.