When the war ended , Iraq found itself in the midst of an economic depression , owed millions of dollars to foreign countries , and was unable to repay its creditors . Kuwait , which had deliberately increased oil output following the war , reducing international oil prices , further weakened the Iraqi economy . In response to this , Saddam threatened Kuwait that , unless it reduced its oil output , Iraq would invade . Negotiations broke down , and on 2 August 1990 , Iraq launched an invasion of Kuwait . The resulting international response led to the Persian Gulf War , which Iraq lost . The United Nations ( UN ) initiated economic sanctions in the war 's aftermath to weaken the Ba'athist Iraqi regime . The country 's economic conditions worsened during the 1990s , and at the turn of the 21st century , Iraq 's economy started to grow again as several states ignored the UN 's sanctions . In the aftermath of the September 11 attacks of 2001 , the United States initiated a " Global War on Terrorism " , and labelled Iraq as a part of an " Axis of Evil " . In 2003 , U.S. and coalition forces invaded Iraq , and the Ba'athist Iraqi regime was deposed less than a month later
September 11 attacks
September 11 attacks
Ba'athist Iraq