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
Iraq–Saudi Arabia relations dissatisfaction with the regime in Baghdad, Crown Prince Abdallah permitted the media to videotape his meeting with some of the opponents of Saddam Hussein. In spite of this, the Saudi leadership opposed the U.S. plan to invade Iraq in 2003 and did not join the Coalition. Their fears and warnings that Iraq would fracture along sectarian and political lines proved accurate. What was worse for Saudi Arabia was the strengthening of the Shi'ites in Iraq, seen as Iran's proxy. This drew the Iranian threat much larger for the Kingdom, forcing them to weaken Iranian influence in Iraq through covertly supporting