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Kuwait faces economic strain as US troop presence draws Iran fire

Kuwait’s reliance on Strait of Hormuz oil exports and Iran’s closure of the waterway leave the Gulf state exposed to disruptions as strikes hit bases hosting American troops.

Reported · Written up by our desk · Trade & Tariffs

Kuwait is facing mounting economic and security pressure as the US troop presence has drawn Iran’s retaliation amid the ongoing US-Iran conflict, Agence France-Presse reported via the SCMP Economy. Six months into the war that began in late February, Iran and its allies have carried out recurrent barrages targeting civilian infrastructure including water desalination plants and energy installations, along with bases that host American troops.

The coverage also highlights Kuwait’s heightened vulnerability because it is locked into the Strait of Hormuz, through which it relies heavily on oil exports for government revenue. The report says Iran has closed the Strait of Hormuz, placing Kuwait in a difficult economic position even as local views diverge on whether the US presence remains an asset or has become a liability.

While some Kuwaitis question the troop deployment as Iran’s line of fire expands, Ghanim Alsulaimani, who remembers the Iraqi invasion decades ago, still supports the United States. At the same time, the report notes that stalled talks to end the war are weighing on Gulf economies more broadly.

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