Ba'athist Iraq reducing international oil prices, further weakened the Iraqi economy. In response to this, Saddam threatened Kuwait that, unless it reduced its oil output, Iraq would invade. Negotiations broke down, and on 2 August 1990, Iraq launched an invasion of Kuwait. The resulting international response led to the Persian Gulf War, which Iraq lost. The United Nations (UN) initiated economic sanctions in the war's aftermath to weaken the Ba'athist Iraqi regime. The country's economic conditions worsened during the 1990s, and at the turn of the 21st century, Iraq's economy started to grow again as several states ignored the UN's sanctions. In
Sheikhdom of Kuwait border between Iraq and Kuwait is, I shall be glad if you will kindly give me this information." More, upon learning that al-Sabah claimed the outer green line of the Anglo-Ottoman Convention (4 April), would relay the information to Sir Percy. On 19 April, Sir Percy stated that the British government recognised the outer line of the Convention as the border between Iraq and Kuwait. This decision limited Iraq's access to the Persian Gulf at 58 km of mostly marshy and swampy coastline. As this would make it difficult for Iraq to become a naval power (the territory did not