Kuwait City Tensions between the two countries increased further in July 1990, after Iraq complained to OPEC claiming that Kuwait was stealing its oil from a field near the border by slant drilling of the Rumaila field. In August 1990, Iraqi forces invaded and annexed Kuwait. After a series of failed diplomatic negotiations, the United States led a coalition to remove the Iraqi forces from Kuwait, in what became known as the Gulf War. On 26 February 1991, the coalition succeeded in driving out the Iraqi forces. As they retreated, Iraqi forces carried out a scorched earth policy by setting oil wells
Lockheed C-130 Hercules in Australian service that country. An operation to fly about 95 Australians and New Zealanders directly out of Iraq and Kuwait was also planned, but would have only been conducted as a last resort due to the great dangers involved. These evacuation flights were not required as Iraq did not invade Saudi Arabia, and the Australians in Iraq departed by road. A proposal to deploy some of the Hercules as part of Australia's contribution to the ensuing Gulf War was also rejected in late 1990 as the aircraft had to be held in reserve in case fighting on the Pacific island of Bougainville