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
United Nations Iraq–Kuwait Observation Mission United Nations Iraq–Kuwait Observation Mission The United Nations Iraq–Kuwait Observation Mission (UNIKOM) was established on April 9, 1991 following the Gulf War by Security Council Resolution 689 (1991) and fully deployed by early May 1991. The task of the 300 military observers was to monitor the demilitarized zone (DMZ) along the Iraq-Kuwait border and the Khawr 'Abd Allah waterway, deter border violations and report any hostile action. On February 5, 1993, under Security Council Resolution 806, the mandate was extended to include physical action to prevent violations and the force was expanded to an intended three mechanized infantry battalions plus