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
Liberation of Kuwait campaign the U.S. Marines stopped at the outskirts of Kuwait City, allowing their Coalition allies to take and occupy Kuwait City, effectively ending combat operations in the Kuwaiti theater of the war. After four days of fighting, all Iraqi troops were expelled from Kuwait, ending a nearly seven-month occupation of Kuwait by Iraq. A little over 1,100 casualties were suffered by the Coalition. Estimates of Iraqi casualties range from 30,000 to 150,000. Iraq lost thousands of vehicles, while the advancing Coalition lost relatively few; Iraq's obsolete Soviet T-72 tanks proved no match for the American M1 Abrams and British Challenger tanks.