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The Pentagon has acknowledged that 13 US military bases across the Middle East, primarily in Kuwait, have become nearly uninhabitable following Iranian retaliatory strikes. In response to the infrastructure damage, military operations are currently being conducted remotely, with personnel dispersed to hotels, civilian offices, and European locations. The situation escalated further as the IRGC warned that any civilian facilities housing US troops would be treated as legitimate military targets. This significant disruption to US regional command and control has heightened geopolitical risk, directly impacting global energy markets and safe-haven assets. Market analysts suggest that the vulnerability of these bases could lead to prolonged instability, supporting prices for Crude Oil and Gold XAU/USD. Meanwhile, risk-on assets like the SPY face downward pressure as the threat of a wider regional conflict looms over investor sentiment.
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