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
Kuwait national football team their complete domination on the Gulf region, and from the Gulf Cup's inception in 1970 until 1990, the tournament was won by only two teams; Kuwait seven times (1970, 1972, 1974, 1976, 1982, 1986, 1990), and despite Iraq's absence in the first three editions and withdrawal in two others, Iraq won it three times (1979, 1984, 1988). Iraq and Kuwait took their increasingly bitter rivalry to a new level. On 11 June 1976, the two met in the semi-final of the Asian Cup in Tehran; Kuwait took the lead twice, Iraq came roaring back twice, And then, in the 10th