GuoJin-Kuwait refused to listen and continue overproducing oil which made prices drop and made iraq invade kuwait.

The economic War by Kuwait through the overproduction of oil by Kuwait made Kuwait responsible. Before the start of the Iran-Iraq war of 1980 to 1988, Iraq was relatively prosperous country with about US$35 billion in reserves. Iraq suffered tremendously during the war with Iran. Besides the heavy loss of lives,Iraq's economy was in ruins.Iraq owed about US$80 billion in debts to its neighbours and other countries that had required a massive US$230 billion.Iraq, thus, had to find ways to pay off this massive debt as well as to rebuild the country. Iraq had hoped to pay off its debt by earning more revenue from the sale of oil. However, oil prices were falling due to over-production by some countries. OPEC had put quotas on the amount of oil that its member countries could produce to prevent a further decline in oil prices. Kuwait and the UAE, ignored the quota set and produced oil well about their assigned limits. This caused oil prices to fall from US$18 to US$7 per barrel at one point. Iraq lost a lot of revenue due to the fall in oil prices. Iraq lost US$1 billion from oil sales each time the price of oil fell by US one dollar. Iraq felt that the action of Kuwait and the UAE was equivalent to waging an economic war on Iraq as 90% of its income came from the sale of oil. This worsened the relationship as Iraq saw Kuwait's refusal as an attack on its interest and hence Iraq decided to launch an attack on Kuwait

Sheares, Bowen, Sherman (SBS)

The economic War by Kuwait through the overproduction of oil by Kuwait made Kuwait responsible. Before the start of the Iran-Iraq war of 1980 to 1988, Iraq was relatively prosperous country with about US$35 billion in reserves. Iraq suffered tremendously during the war with Iran. Besides the heavy loss of lives,Iraq's economy was in ruins.Iraq owed about US$80 billion in debts to its neighbours and other countries that had required a massive US$230 billion.Iraq, thus, had to find ways to pay off this massive debt as well as to rebuild the country. Iraq had hoped to pay off its debt by earning more revenue from the sale of oil. However, oil prices were falling due to over-production by some countries. OPEC had put quotas on the amount of oil that its member countries could produce to prevent a further decline in oil prices. Kuwait and the UAE, ignored the quota set and produced oil well about their assigned limits. This caused oil prices to fall from US$18 to US$7 per barrel at one point. Iraq lost a lot of revenue due to the fall in oil prices. Iraq lost US$1 billion from oil sales each time the price of oil fell by US one dollar. Iraq felt that the action of Kuwait and the UAE was equivalent to waging an economic war on Iraq as 90% of its income came from the sale of oil. This worsened the relationship as Iraq saw Kuwait's refusal as an attack on its interest and hence Iraq decided to launch an attack on Kuwait

Sheares, Bowen, Sherman (SBS)

Kuwait refused to stop producing oil, causing oil prices to drop due to demand and supply.

Iraq's economic foundations weakens as one of Iraq main source of income is oil. They were cornered because of the low oil price and decided to invade Iraq.