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
United States support for Iraq during the Iran–Iraq War a series of "catastrophic" Iraqi defeats. They had been driven out of Iran, and the Iraqi army looked like it was falling apart." "The Reagan administration feared that Iran's army might slice through Iraq to the oilfields of Kuwait and Saudi Arabia"; Veliotes, then "Assistant Secretary of State for Near Eastern and South Asian Affairs," "outlined a nightmare scenario in which the Iranians invade Iraq, they defeat Iraq, and then head straight for Israel, which is distracted and debilitated by its ongoing adventure in Lebanon." As a result, the U.S. gradually abandoned its policy of neutrality. In February 1982, Iraq