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
United Nations Iraq–Kuwait Observation Mission Mission". "International Peacekeeping", 10 (2): 71-88. United Nations Iraq–Kuwait Observation Mission The United Nations Iraq–Kuwait Observation Mission (UNIKOM) was established on April 9, 1991 following the Gulf War by Security Council Resolution 689 (1991) and fully deployed by early May 1991. The task of the 300 military observers was to monitor the demilitarized zone (DMZ) along the Iraq-Kuwait border and the Khawr 'Abd Allah waterway, deter border violations and report any hostile action. On February 5, 1993, under Security Council Resolution 806, the mandate was extended to include physical action to prevent violations and the force was expanded to an