A key element of US political , military and energy economic planning occurred in early 1984 . The Iran – Iraq war had been going on for five years by that time and there were significant casualties on both sides , reaching into the hundreds of thousands . Within President Ronald Reagan 's National Security Council concern was growing that the war could spread beyond the boundaries of the two belligerents . A National Security Planning Group meeting was formed , chaired by then Vice President George Bush , to review US options . It was determined that there was a high likelihood that the conflict would spread into Saudi Arabia and other Gulf states , but that the United States had little capability to defend the region . Furthermore , it was determined that a prolonged war in the region would induce much higher oil prices and threaten the fragile recovery of the world economy , which was just beginning to gain momentum . On 22 May 1984 , President Reagan was briefed on the project conclusions in the Oval Office by William Flynn Martin who had served as the head of the NSC staff that organized the study . The full declassified presentation can be seen here . The conclusions were threefold : first , oil stocks needed to be increased among members of the International Energy Agency and , if necessary , released early in the event of oil market disruption ; second , the United States needed to beef up the security of friendly Arab states in the region ; and third , an embargo should be placed on sales of military equipment to Iran and Iraq . The plan was approved by President Reagan and later affirmed by the G-7 leaders headed by the United Kingdom 's Prime Minister , Margaret Thatcher , in the London Summit of 1984 . The plan was implemented and became the basis for US preparedness to respond to the Iraqi occupation of Kuwait in 1991
London Summit of 1984
10th G7 summit
Gulf War