n August 2, 1990, Iraqi forces invaded the country of Kuwait. Iraq had become deeply in debt during the Iran-Iraq War of the 1980's and was pushing for Saudi Arabia and Kuwait to forgive its debts. After they refused, Iraq began reducing its oil production to drive up prices of oil so it could take in enough money to rebuild its ruined economy. Kuwait, however, increased production and actually drove down prices of oil - something Iraq viewed as an act of economic warfare.