Kuwait Kuwait declined an Iraqi request to forgive its US$65 billion debt. An economic rivalry between the two countries ensued after Kuwait increased its oil production by 40 percent. Tensions between the two countries increased further in July 1990, after Iraq complained to OPEC claiming that Kuwait was stealing its oil from a field near the border by slant drilling of the Rumaila field. In August 1990, Iraqi forces invaded and annexed Kuwait. After a series of failed diplomatic negotiations, the United States led a coalition to remove the Iraqi forces from Kuwait, in what became known as the Gulf War.
SIPRI Arms Transfers Database, Iraq 1973–1990 a major supplier until 1990, when Iraq invaded Kuwait and all legal arms transfers to Iraq ended. The United States did not supply any arms to Iraq until 1982, when Iran's growing military success alarmed American policymakers. It then did so every year until 1988. These sales amounted to less than 1% of the total arms sold to Iraq in the relevant period. Although most other countries never hesitated to sell military hardware directly to Saddam Hussein's regime, the U.S., equally keen to protect its interests in the region, opted for and developed an indirect approach. The CIA began covertly