1) Iraq invaded Kuwait in 1990 due to disputes over oil production quotas set by OPEC, war debt from the Iran-Iraq war, and territorial claims. 2) The US led a coalition of forces to defend Saudi Arabia and force Iraq's withdrawal from Kuwait. This resulted in military action known as Operation Desert Storm. 3) The invasion and subsequent conflict had severe humanitarian and environmental impacts across Iraq and Kuwait and displaced millions of people across the region. It also damaged Iraq's military and international standing.

1. How to resolve the conflicts?
Arab League

2. What did Iraq want from Kuwait?
• Rumaila Oilfield compensation
• Bubiyan and Warbah islands
• Oil production pegged to OPEC quota
• Rebuild Iraq after Iran-Iraq war
• Clear the war debt

3. Kuwait’s actions
• Rumaila Oilfield’s compensation
– Denied theft accusation
– Refused to pay compensation of US$2.4billion
• Angered Iraq
– Relationship soured and tension rose

4. Kuwait’s actions
• Bubiyan and Warbah islands
– Claimed ownership
– Refused to lease islands
– Talks failed
• Iraq deemed Kuwait as a threat
– Block off Iraq’s access to the gulf
– Affect oil export
– Affect revenue

5. Kuwait’s actions
• Oil production pegged at OPEC quota
– Refused to abide to quota
– Oil price fell from US$18 to US$7 per barrel
• Iraq deemed Kuwait as waging economic
war
– Revenue fell
– Lost US$1 billion when price fall by a dollar

6. Reactions
• America’s stand
– Fear

7. Reasons for Invasion
• Clear war debt/ rebuild economy
– Needs to clear debt of US$80 billion
– Require US$230 billion for reconstruction works
• Not enough resources in war torn Iraq
• People were unhappy with post-war situations
– Shi’a Muslims
– Iraqi soldiers

8. On-lookers and their actions
• Arab League
– Mediator
– Pressured other countries to write off debts eg.
Saudi
– Pressured Kuwait and UAE to lower production
– Organized dialogue between Iraq and Kuwait
• Kuwait to raise oil prices to US$21 per barrel
• Kuwait to write off war debt
• Kuwait to provide US$500 million loan

9. Outcome of negotiations
• Failed
– Due to islands disputes
– Fielded troops at border
• 2 Aug 1990
– Invasion of Kuwait
– Kuwait fell within 12 hrs
– Moved towards Saudi

10. Reasons for Invasion
• Free Kuwaitis – revolutionaries
• To calm/ improve situations in Iraq (Shi’a
Muslims + Iraq soldiers)
• US sympathy

11. What it means if Iraq takes over
Kuwait?
• Control 20% of world’s oil production
– Set high prices
– Affect world’s economy
• Bold
– Look towards Saudi’s riches

12. Reactions from Arab
• Say “NO” to western intervention
• Kuwait requested Arab League to condemn
Iraq’s actions/withdrawal
– Divided outcome
– ineffective

13. Reactions from US
• Intervened and deployed soldiers to defend
Saudi – Operation Desert Shield
• Joined in by Britain, France and members of
Arab League – coalition forces

14. Reactions from International
community
• UN security council passed resolution
– Immediate withdrawal from Kuwait
• Set up for negotiations between Iraq and
Kuwait
• Kuwait and Iraq’s assets frozen
• Military and economic sanctions (useful??)

15. Iraq’s reactions
• Before Arab League’s act to condemn Iraq
– Withdraw from Kuwait
– Kuwait’s ruling power ousted
• After Arab League’s act to condemn Iraq with
coalition forces
– Declared annexation
– Took westerners as hostages in Iraq and Kuwait

16. Iraq’s reactions
• Pressured to withdraw from Kuwait (with
conditions
– End sanctions
– Full control of Rumaila oilfield
– Access to the gulf
• Conditions not accepted by US
• Last meeting before deadline for war
– failed

17. Operation Desert Storm
• 15 January 1991
• Force Iraq out of Kuwait
• Destroyed Iraq’s command and control
capability through air raids
• Destroyed communication centers
• Iraq crippled

18. Impact
• Kuwait
– More than 1000 civilians killed, thousands
tortured
– Fled their country
– Looting
– Set fire to 600 out of 950 oil wells
– Damages over US$25 billion

19. Impact
• Iraq
– Military crippled
• Destroyed almost 1/3 war machines
• Destroyed air defence
• Loss of morale among troops
• Iraqi soldiers surrendered
• Thousands of troops killed along the Highway of Death

20. Impact
• Kurds rise against Saddam
– No military support from coaltion
– Massacred one million Kurdish refugees
– Coalition abandoned the Kurds
– Peacekeepers sent in
• Iraqi’s sufferings
– Widespread destruction
– Spread of diseases - contamination

21. Regional/ International Impacts
• Environmental catastrophe
– Oil wells fires
– Dumping of oil (11 million barrels) in Persian Gulf
– Marine life threatened
– $$ to put out fire
– $$ to clean up oil slick

22. Regional/ International Impact
• Displaced foreigners
– 2 million foreigners fled the country
– Sufferings for their family