Iraq–Kuwait relations occupied El-Samitah near the Kuwaiti border, which evoked an international crisis. The Iraqi forces eventually withdrew under Saudi pressure. In 1990, Iraq accused Kuwait of stealing Iraqi oil through slant drilling, however some Iraqi sources indicated Saddam Hussein's decision to attack Kuwait was made only a few months before the actual invasion. There were several reasons for the Iraq move, including Iraq's inability to pay more than $80 billion that had been borrowed to finance the war with Iran and also Kuwaiti overproduction of oil which kept oil revenues down for Iraq. The invasion started on 2 August 1990, and
Invasion of Kuwait Republican Guard or fell back to neighbouring Saudi Arabia and Bahrain. Iraq set up a puppet government known as the "Republic of Kuwait" to rule over Kuwait and then annexed it outright, when Saddam Hussein announced a few days later that it was the 19th province of Iraq. When the Iran–Iraq War broke out, Kuwait initially stayed neutral and also tried mediating between Iran and Iraq. In 1982, Kuwait along with other Arab states of the Persian Gulf supported Iraq in order to curb the Iranian Revolutionary government. In 1982–1983, Kuwait began sending significant financial loans to Iraq. Kuwait's large-scale