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 it. Several foreign firms working in the Rumaila field also dismissed Iraq's slant-drilling claims as a "smokescreen to disguise Iraq's more ambitious intentions". On 25 July 1990, only a few days before the Iraqi invasion, OPEC officials said that Kuwait and the United Arab Emirates had agreed to a proposal to limit daily oil output to 1.5 million barrels, thus potentially settling differences over oil policy between Kuwait and Iraq. At the time of the settlement, more than 100,000 Iraqi troops were deployed along the Iraq–Kuwait border, and American officials expressed little indication of decline in tensions despite the OPEC