Ongoing US-Iran military exchanges since February 2026 have driven repeated Iranian missile and drone strikes on Kuwaiti territory, including ports, power facilities, airports, and military sites, framed by Tehran as retaliation for American operations. Kuwaiti forces have intercepted multiple salvos in October 2026, reporting material damage and limited casualties while condemning the attacks at the UN and citing violations of sovereignty under Resolution 2817. Iran has also threatened shipping near Kuwaiti waters amid broader Strait of Hormuz tensions. These verified incidents reflect horizontal escalation in the regional conflict, with trader consensus shaped by the frequency of qualifying strikes and any near-term diplomatic or military shifts that could alter the pace before market resolution dates.