I always keep this in mind when I think of Iraq's invasion of Kuwait....like, who really was the victim?
Dispute over the financial debt
Kuwait had heavily funded the 8 year long Iraqi war against Iran. By the time the war ended, Iraq was not in a financial position to repay the $40 billion which it had borrowed from Kuwait to finance its war.[5] Iraq argued that the war had prevented the rise of Iranian influence in the Arab World. However, Kuwait's reluctance to pardon the debt created strains in the relationship between the two Arab countries. During late 1989, several official meetings were held between the Kuwaiti and Iraqi leaders but they were unable to break the deadlock between the two.
Iraq tried repaying its debts by raising the prices of oil through OPEC's oil production cuts. However, Kuwait, a member of the OPEC, prevented a global increase in petroleum prices by increasing its own petroleum production, thus lowering the price and preventing recovery of the war-crippled Iraqi economy.[6] This was seen by many in Iraq as an act of aggression, further distancing the countries. The collapse in oil prices had a catastrophic impact on the Iraqi economy. According to former Iraqi Foreign Minister Tariq Aziz, "every US$1 drop in the price of a barrel of oil caused a US$1 billion drop in Iraq's annual revenues triggering an acute financial crisis in Baghdad."[4] It was estimated that Iraq lost US$14 billion a year due to Kuwait's oil price strategy. http://en.wikipedia.org/wiki/Invasion_of_Kuwait
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