How much higher can it go right now?
Well, the UK could go to war with Iran, for example.
Iran has the military might of a small micronation and appears to be spazzing out right now hitting bases all over the place pissing everyone in the region off
I can't say that I really agree with your assessment, IMO, Iran is actually a pretty capable military power (#13 in the world, according to GlobalMilitary.net), with two pretty powerful military forces (the IRGC and the Iranian military itself) and it has been penetrating the Iron Dome reliably. They've been pretty rationally targeting primarily US military bases across the GCC states, which historically have been at odds with Iran due to geopolitical and religious issues anyways - the attacks are very clearly deliberate and aimed to put pressure on the US to back down.
Honestly, I think it's a pretty decent strategy, better than I could have come up with, for sure. It's hard to say how successful it will be, obviously I don't know the full capabilities of any of the countries involved or how much pressure is on them logistically and economically speaking, but due to the nature of how Iran's military forces are structured, I honestly don't doubt they can go on lobbing bombs around the Gulf for at least a few weeks. There will be a lot of pressure on President Trump to cool the hostilities due to the conflict impacting trade in the region, particularly fossil fuel industries.