From Colonial Lines to Gulf War Flames: Iraq, Kuwait, and the Geopolitics of Oil The creation of Iraq and Kuwait from Ottoman ruins under British colonial rule set the stage for decades of tension, culminating in Iraq’s 1990 invasion of Kuwait. Iraq, a patchwork of diverse groups, and Kuwait, a strategic oil-rich sheikhdom, clashed over borders, oil, and debt. Iraq’s grievances—territorial disputes, economic ruin post-Iran-Iraq War, and Kuwait’s oil overproduction—fueled Saddam Hussein’s ambitions. Western powers, including the U.S. and France, and the Soviet Union armed Iraq during its war with Iran, while Kuwait loaned billions, expecting repayment. When Kuwait demanded its $10–14 billion back, Iraq, feeling betrayed, invaded, seeking oil wealth and Gulf access. Neighboring Iran, Saudi Arabia, and others shaped the conflict’s backdrop. The U.S.-led coalition’s 1991 response crushed Iraq, exposing the irony of a nation armed by its eventual foes, leaving a legacy of instability and ...