AvStop Magazine Online

Iraqi Invasion of Kuwait Causes Aviation Fuel Prices To Rise 

On August 2, 1990, Saddam Hussein sent his military troops into Kuwait. Within hours Kuwait is under the control of Iraqi Troops. The invasion by Saddam's military was the result of Saddam's desire to control the Persian Gulf, regional dominance of the export of crude oil and the Kuwaiti wealth. That is; Kuwait had enormous oil reserves and a great deal of cash on reserves. The invasion by Saddam concerned the world. Would Saddam invade other nearby countries?  Baghdad complained that Kuwait was in violation of OPEC guidelines. Kuwait was exceeding the quota of oil that they exported, which forced prices of oil down to nearly $7.00 a barrel. For every dollar that fuel prices fell, Iraq would loose one billion dollars a year. Baghdad further reported that it would remove its troops beginning five days from the invasion, set up a new army in Kuwait and a new government composed of Kuwaiti officers. However, many saw this as a puppet regime.

Saddam increased his control of the worlds oil supply to 20 percent. This meant Saddam could influence the price of crude oil worldwide. He could make or break countries that were heavily dependent on imported crude oil. Saddam's invasion of Kuwait sent financial markets around the world in turmoil. The price of fuel at the pumps skyrocketed. Many economist believed that oil companies were taking advantage of the situation, that there was no real reason for the cost of fuel to have risen so quickly. These same economist felt that the United States' interest was in great danger causing further weakening in the economy and sending it into a recession. Given the federal deficit and the strain on the economy due to the S & L scandal.

On November 29, 1990, the Security Counsel gave Saddam a deadline of January 15, 1991, to get out of Kuwait or face a possible attack. Baghdad radio informed the world that Iraq would "make Kuwait a graveyard for those who launched any aggression". In the coming of the new year, Secretary James Baker in Geneva, met with Iraqi's Foreign Minister. However, the meetings proved ineffective. Within days of these talks, Congress authorized President Bush to undertake military intervention with Saddam and his military. On January 16, 1991, President Bush ordered a full scale attack against Saddam and his military. Throughout the night, US and Allied warships and submarines positioned in the Persian Gulf, Red Sea and the Mediterranean, launched Tomahawk Cruise Missiles at Iraqi command centers, airports, munitions dumps, missile launching sites, oil refineries and chemical plants. US and Allied troops were being transported to the war front. Navy jets were being sent to further destroy Saddam's key military points.

Saddam and his military launched Scud missiles on Israel in an effort to create war throughout the Mediterranean. However, Israel held its composure and the US used its patriot missiles to shoot down scud missiles. It is not clear how effective the patriot missiles were at shooting down scud missiles. On February 27,1991, Kuwait was liberated from Saddam. On February 28, 1991, at the direction of President Bush, offensive air operations in Desert Storm ceased at 0500Z hours.