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–Kuwait relations Iraq–Kuwait relations The international relations between Iraq and Kuwait have been turbulent, fuelled by Iraqi debt and conflicts over oil. Until 2004, Iraqi-Kuwaiti relations were characterized by the Iraqi government claiming historic rights to Kuwait. Ever since Kuwaiti independence in 1961, the Iraqi governments sought various opportunities to reclaim and annex Kuwait. A short-lived crisis evolved in 1961, as the Iraqi government threatened to invade Kuwait and the invasion was finally averted following plans by the Arab League to form an international Arab force against Iraqi designs on Kuwait. Another crisis evolved on 20 March 1973, when Iraqi army units