Kuwait’s military stated on Thursday that it is fending off hostile missile and drone attacks originating from Iran. One day prior, US President Trump said the renewed hostilities between the United States and Iran would not last “very long”.
Kuwait has urged residents to follow safety guidelines, noting that any explosions heard across the country stem from its air‑defense systems intercepting incoming hostile targets.
Meanwhile, regional tensions have flared once again. Markets are closely watching whether the conflict will spill over to broader parts of the Middle East.
Trump Says Conflict Will Not Drag On
Speaking to reporters on Wednesday, Trump said he believed the war “will not last very long”, adding “I don’t know how much more they (Iran) can take”. He described the US strikes against Iran on Tuesday as “a very heavy attack”, and noted that Washington stands ready to conduct further military action “at any time”.
Iran retaliated following Tuesday’s strikes, targeting US regional allies Jordan and Bahrain. With both sides exchanging blows, fears over escalating Middle‑East tensions keep mounting, and risk‑aveRSIon sentiment may continue to shape risk appetite across global financial markets.
White House Attempts to Cool Down the Conflict
Reuters, citing insiders, reported that senior Trump administration aides are pushing to prevent further escalation of the Iran war ahead of November’s mid‑term elections. US Vice President JD Vance and Secretary of State Marco Rubio are seeking to keep the conflict relatively “quiet” until the mid‑terms conclude.
According to Reuters, this approach aims to limit electoral losses for the Republican Party, as public support for the war keeps declining among American voters. An August poll conducted by the UniveRSIty of Massachusetts Amherst among 1000 respondents shows broad disapproval over Trump’s handling of the Iran war.
The univeRSIty stated that more than two‑thirds of respondents disapprove of Trump’s management of the war, and nearly the same share are dissatisfied with his overall performance in office. Trump remarked on Wednesday that he is not driven by mid‑term election considerations, yet he will back the Republican Party since Republicans “respect the fact that we cannot allow Iran to obtain nuclear weapons”.
At another event held in the Rose Garden shortly afterwards, Trump stated that US actions are “not for other reasons, at least 99 percent not”, but to help the Middle East, help Israel and serve US national interests.
Regional Risks Remain on Radar
From a market perspective, the attacks on Kuwait and Iran’s retaliatory strikes against US regional allies demonstrate that geopolitical risks in the Middle East have not faded. Should hostilities expand further, volatility in crude oil, gold, the US Dollar and other assets may intensify. Investors will keep monitoring potential US military escalation and whether the conflict disrupts wider regional security and energy‑shipping flows.