1990 oil price shock and prices began to fall. On August 2, 1990, The Republic of Iraq invaded the State of Kuwait, leading to a 7-month occupation of Kuwait and an eventual U.S.-led military intervention. While Iraq officially claimed Kuwait was stealing its oil via slant drilling, its true motives were more complicated and less clear. At the time of the invasion, Iraq owed Kuwait $14 billion of outstanding debt that Kuwait had loaned it during the 1980–1988 Iran–Iraq War. In addition, Iraq felt Kuwait was overproducing oil, lowering prices and hurting Iraqi oil profits in a time of financial stress. In the buildup
Ba'athist Iraq the Iraqi government to focus on Iraqi Kurdistan which had revolted. Saddam appointed his cousin Ali Hasan al-Majid as military chief in Kurdistan. al-Majid initiated the al-Anfal campaign; chemical weapons were used against civilians. In April 1988, after a series of Iraqi military victories, a ceasefire was agreed between Iraq and Iran; the war is commonly considered "status quo ante bellum". In the aftermath of the Iran–Iraq War, Kuwait intentionally increased the country's oil output; this led to an international price decrease in oil. Saddam reacted by threatening to invade Kuwait if it continued to increase its oil output (which