Kuwait Kuwait declined an Iraqi request to forgive its US$65 billion debt. An economic rivalry between the two countries ensued after Kuwait increased its oil production by 40 percent. 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.
Invasion of Kuwait US embassy in Iraq, following on from Ms Glaspie's meeting with Saddam Hussein. In addition, one week before the invasion, the Assistant Secretary of State, John Kelly, told the US congress that the US had no treaty obligations to defend Kuwait. According to Richard E. Rubenstein, Glaspie was later asked by British journalists why she had said that, her response was "we didn't think he would go that far" meaning invade and annex the whole country. Although no follow-up question was asked, it can be inferred that what the U.S. government thought in July 1990 was that Saddam Hussein was