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
Iraq–Kuwait barrier Iraq–Kuwait barrier The Iraq–Kuwait barrier ( "Hudud al-'Irāq-al-Kuwayt") is a border fence extending six miles (10 km) into Iraq, three miles (5 km) into Kuwait, and across the full length of their mutual border from Saudi Arabia to the Persian Gulf. Constructed by authorization of the United Nations Security Council, its stated purpose was to stop a re-invasion of Kuwait by Iraq. The border barrier, made of electrified fencing and concertina wire, is braced by a -wide and -deep trench, complete with a -high dirt berm and guarded by hundreds of soldiers, several patrol boats, and helicopters. Construction of the