1990 oil price shock and prices began to fall. On August 2, 1990, The Republic of Iraq invaded the State of Kuwait, leading to a 7-month occupation of Kuwait and an eventual U.S.-led military intervention. While Iraq officially claimed Kuwait was stealing its oil via slant drilling, its true motives were more complicated and less clear. At the time of the invasion, Iraq owed Kuwait $14 billion of outstanding debt that Kuwait had loaned it during the 1980–1988 Iran–Iraq War. In addition, Iraq felt Kuwait was overproducing oil, lowering prices and hurting Iraqi oil profits in a time of financial stress. In the buildup
Iraq–Kuwait relations Iraq–Kuwait relations The international relations between Iraq and Kuwait have been turbulent, fuelled by Iraqi debt and conflicts over oil. Until 2004, Iraqi-Kuwaiti relations were characterized by the Iraqi government claiming historic rights to Kuwait. Ever since Kuwaiti independence in 1961, the Iraqi governments sought various opportunities to reclaim and annex Kuwait. A short-lived crisis evolved in 1961, as the Iraqi government threatened to invade Kuwait and the invasion was finally averted following plans by the Arab League to form an international Arab force against Iraqi designs on Kuwait. Another crisis evolved on 20 March 1973, when Iraqi army units