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
Ba'athist Iraq the market with their oil. The result was that international oil prices were still at the 1970s level. In October 1988, because of Kuwait and the UAE, international oil prices had fallen to US$12 per barrel. The policy which the UAE (and especially Kuwait) followed hampered Iraq's economic growth. In the Iran–Iraq War's aftermath, Iraq had grown more dependent on oil prices. The result of Kuwait and the UAE's oil policies could be felt in 1990, when international oil prices decreased to US$13.67 per barrel. This time, the sudden fall in oil prices triggered reactions in Iraq; in "Al-Thawra", the