1990 oil price shock and prices began to fall. On August 2, 1990, The Republic of Iraq invaded the State of Kuwait, leading to a 7-month occupation of Kuwait and an eventual U.S.-led military intervention. While Iraq officially claimed Kuwait was stealing its oil via slant drilling, its true motives were more complicated and less clear. At the time of the invasion, Iraq owed Kuwait $14 billion of outstanding debt that Kuwait had loaned it during the 1980–1988 Iran–Iraq War. In addition, Iraq felt Kuwait was overproducing oil, lowering prices and hurting Iraqi oil profits in a time of financial stress. In the buildup
SIPRI Arms Transfers Database, Iraq 1973–1990 a major supplier until 1990, when Iraq invaded Kuwait and all legal arms transfers to Iraq ended. The United States did not supply any arms to Iraq until 1982, when Iran's growing military success alarmed American policymakers. It then did so every year until 1988. These sales amounted to less than 1% of the total arms sold to Iraq in the relevant period. Although most other countries never hesitated to sell military hardware directly to Saddam Hussein's regime, the U.S., equally keen to protect its interests in the region, opted for and developed an indirect approach. The CIA began covertly