Situational analysis - Causes of the Iraq-Kuwait Crisis

Examine the information on Iraq, Kuwait and the world situation in 1991. Are you able to identify some possible areas of tension that could arise between Iraq and Kuwait?

(a) What was Iraq like in 1991?
1. Infrastructure destroyed. Just completed a 10 year war with Iran – poverty stricken. Read Page 5 for Iran-Iraq war details.
2. In debt – 230 million in debt for reconstruction
3. Still a military power in the region with world’s 4th largest Army with biological weapons and potential nuclear technology.
4. Saddam Hussein was President.
5. Main Export – oil [ Needed to sell as much oil as possible to pay debt]
6. Owed money to Kuwait – $14 billion
7. Shared a major oil field with Kuwait.
8. Had only 1 port Umm Qasr where oil could be export by sea. Iraq’s port Umm Qasr is directly behind Kuwait 2 islands Bubiyan and Warbah.

(b) What was Kuwait like in 1991?
1. Rich
2. Peaceful
3. Militarily weak
4. Loaned money to Iraq $14 billion to support Iraq during Iran-Iraq war.
5. Main export – oil and was producing a large amount of oil which contributed to the fall in oil prices in 1991
6. Shared a major oil field with Iraq

(c) Global situation
1. Price of oil was falling.
2. Middle Eastern countries were producing a lot of oil.
2. World was dependent on oil from the Middle East including world powers like the United states.