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
Invasion of Kuwait border. The American ambassador declared to her Iraqi interlocutor that Washington, "inspired by the friendship and not by confrontation, does not have an opinion" on the disagreement between Kuwait and Iraq, stating "we have no opinion on the Arab–Arab conflicts". Glaspie also indicated to Saddam Hussein that the United States did not intend "to start an economic war against Iraq". These statements may have caused Saddam to believe he had received a diplomatic green light from the United States to invade Kuwait. This exchange only became public knowledge in 2011, following a WikiLeaks release of a cable, sent by the