Aug 2, 1990 Saddam Hussein sent his military troops into Kuwait and within hours Kuwait is under the control of Iraqi Troops. The invasion by Saddam's military was the result of Saddam need to control the Persian Gulf, regional dominance of the export of cruel oil and the Kuwaiti wealth. That is; Kuwait had enormous oil reserves and a great deal of cash on reserves. The invasions by Saddam concerned the world.

Would Saddam invasion end their, would oil prices continue to rise ? Baghdad had complained that Kuwait was in violation of OPEC quotas. In that Kuwait was overproducing oil exports which had forced price of oil down to nearly $7 a barrel and that 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 invasions, set up a new army in Kuwait and 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 world wide.