1990 oil price shock and prices began to fall. On August 2, 1990, The Republic of Iraq invaded the State of Kuwait, leading to a 7-month occupation of Kuwait and an eventual U.S.-led military intervention. While Iraq officially claimed Kuwait was stealing its oil via slant drilling, its true motives were more complicated and less clear. At the time of the invasion, Iraq owed Kuwait $14 billion of outstanding debt that Kuwait had loaned it during the 1980–1988 Iran–Iraq War. In addition, Iraq felt Kuwait was overproducing oil, lowering prices and hurting Iraqi oil profits in a time of financial stress. In the buildup
Invasion of Kuwait border. The American ambassador declared to her Iraqi interlocutor that Washington, "inspired by the friendship and not by confrontation, does not have an opinion" on the disagreement between Kuwait and Iraq, stating "we have no opinion on the Arab–Arab conflicts". Glaspie also indicated to Saddam Hussein that the United States did not intend "to start an economic war against Iraq". These statements may have caused Saddam to believe he had received a diplomatic green light from the United States to invade Kuwait. This exchange only became public knowledge in 2011, following a WikiLeaks release of a cable, sent by the