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
Iraq–Kuwait barrier barrier began in 1991. In January 2004, Kuwait decided to install a new 217 km iron border barrier along the existing border. The stated needs were protecting the northern border, and preventing cars coming from Iraq from approaching the electricity bars. The barrier will cost an estimated 28 million dollars and will extend from Umm Qasr until the joint border triangle where Saudi Arabia, Iraq, and Kuwait meet. Asphalted roads will be also constructed to facilitate border security movement. Under Saddam Hussein's rule (until the Liberation of Kuwait in 1991) Iraq viewed Kuwait as part of Iraq, and viewed the