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
Crime in Kuwait Arabian regime, seemed to have eliminated or greatly reduced the threat and Kuwait has not had a terrorist incident since 2005. Several Kuwaiti men linked to extremist elements have been known to have gone to Iraq to fight coalition forces, but that seems to have abated as local Iraqi militants seemed eager to use them as "suicide bombers" without the persons knowledge or consent. The Department of Foreign Affairs and Trade (DFAT) of the Government of Australia reported there is a high threat of terrorist attack in Kuwait. DFAT claimed they received reports that terrorists are masterminding attacks against assets