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
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