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
Iraq–Kuwait relations within two days of intense combat, most of the Kuwaiti Armed Forces were either overrun by the Iraqi Republican Guard or escaped to neighboring Saudi Arabia and Bahrain. The state of Kuwait was annexed and proclaimed as Iraq's 19th province. During the Gulf War, Kuwait would soon be liberated by coalition forces. Since the fall of the Ba'ath Party regime in Iraq, relations have improved between the two states. On 25 April 2007, Kuwaiti lawmaker Saleh Ashour called in a statement for reopening Kuwait's embassy in Baghdad and for strongly supporting the government in Baghdad; Al-Ghanim, however, said he believes