Ba'athist Iraq Kuwait did nevertheless). Saudi Arabia, frightened by Saddam's military strength, then persuaded Kuwait to lower its oil output. However, when Kuwait lowered its oil output Venezuela increased its output. Saddam then ordered the invasion of Kuwait to solve the country's economic problems, with the professed goal of uniting Iraq; Kuwait was considered by many Iraqis as part of Iraq. On 18 July 1990 Saddam demanded that Kuwait repay Iraq for the oil it had (according to Saddam) stolen, and nullified Iraq's debt to Kuwait. The Kuwaiti leadership failed to respond, and on 2 August 1990 the Iraqi military began the
Kuwait the stock market crash. In 1990, Kuwait was invaded, and later annexed, by Saddam's Iraq. The Iraqi occupation of Kuwait came to an end in 1991 after military intervention by a military coalition led by the United States. Kuwait is a major non-NATO ally of the United States. It is also a major ally of ASEAN, while maintaining a strong relationship with China. Kuwait is a constitutional sovereign state with a semi-democratic political system. Kuwait has a high-income economy backed by the world's sixth largest oil reserves. The Kuwaiti dinar is the highest valued currency in the world. According to