Ongoing military tensions between Iran and Kuwait, including repeated Iranian missile and drone strikes on Kuwaiti infrastructure since February 2026, have heightened regional risks without escalating to a ground invasion. Kuwait has condemned these attacks at the UN, citing violations of its sovereignty and calling for enforcement of Security Council Resolution 2817, while reporting disrupted shipping, airport damage, and thwarted sea infiltrations by Iran-linked groups in mid-October. Iran has issued threats against tankers near Kuwaiti ports and closed the Strait of Hormuz, prompting Kuwaiti warnings about global supply chains. US-Iran exchanges and proxy involvement from Iraq have further strained Kuwait’s security posture, though Kuwait maintains neutrality and rejects use of its territory for attacks. These developments shape trader assessments of escalation thresholds in the coming months.