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
Baiji, Iraq Baiji, Iraq Baiji (; also spelled Bayji) is a city of about 200,000 inhabitants in northern Iraq. It is located some 130 miles north of Baghdad, on the main road to Mosul. It is a major industrial centre best known for its oil refinery, the biggest in Iraq, and has a large power plant. With regards to transport in the area, Baiji is a junction of the national railway network. After the invasion of Kuwait in 1990, dozens of British civilians taken captive in Kuwait were held at the Baiji oil refinery, apparently as human shields. The city was bombed