After the war, Iraq was heavily indebted to several Arab countries, including a $14 billion debt to Kuwait. Ir

Question

After the war, Iraq was heavily indebted to several Arab countries, including a $14 billion debt to Kuwait. Iraq hoped to repay its debts by raising the price of petroleum through OPEC oil production cuts, but instead, Kuwait increased production, lowering prices, in an attempt to leverage a better resolution of their border dispute.

can somebody explain the border part please? I don't fully understand the logic of it

Answer 1

If the statement has any logic It might be this.
After the Iran-Iraq war.
Iraq owed the money, some of it to Kuwait.
Iraq didn't have enough money to repay it.
If Iraq would settle it's border agreement with Kuwait, in a way favorable to Kuwait.
Kuwait would in turn cancel some or all of Iraq's debt.
The more difficult for Iraq to repay the greater the pressure to settle on Kuwait's terms.
I think Kuwait would be happier to see lower oil prices for other reasons as well.
It had billions of $'s of investments in the West, which do better with lower oil prices.

It was a bad judgment Iraq invaded Kuwait.

The link below gives a less convoluted explanation.

Answer 2

Kuwait pay alot of money to Iraq in the war with Iran 1980-1988 to avoid the revolutionary Iran after the end of the war Iraq army grew up became exactly like Frankstien monestor and is Kuwait small country fraid from that so they found if the oil price decrease the Iraq fall in economical problem because he depend on oil export and never think to attack them .this is fatal mistake because Saddam Poker man and the rest of story Known

Answer 3

To tell you the truth I don't know much about the issue regarding the the boarder dispute between the two.

But having lived in Kuwait I can guarantee you the the average Kuwaiti citizen want to punishes and punishes the Iraqi's and the start all over again.

Due to the invasion of their country and terrible abuses they suffered from the near barbaric Iraqi soldier I wouldn't doubt that the Kuwait's would increase production just to anger the Iraqi's trying to aid in rebuilding their country through oil sales. And leveraging that ability to gain every concession regarding the boarder they could squeeze out of Iraq.

They take revenge and retribution very seriously in the middle east....and they have a generational memory.