▁War , ▁and ▁K uw ait i ▁high ▁pet role um ▁production ▁levels ▁which ▁kept ▁reven ues ▁down ▁for ▁Ira q . ▁The ▁invasion ▁started ▁on ▁ 2 ▁August ▁ 1 9 9 0 , ▁and ▁within ▁two ▁days ▁most ▁of ▁the ▁K uw ait ▁Ar med ▁Forces ▁were ▁either ▁over run ▁by ▁the ▁Ira qi ▁Republican ▁Guard ▁or ▁fell ▁back ▁to ▁neighbour ing ▁Sa udi ▁Arab ia ▁and ▁Bah rain . ▁Ira q ▁set ▁up ▁a ▁pu ppet ▁government ▁known ▁as ▁the ▁" Rep ublic ▁of ▁K uw ait " ▁to ▁rule ▁over ▁K uw ait ▁and ▁then ▁an nex ed ▁it ▁out right , ▁when ▁S add am ▁Hus sein ▁announced ▁a ▁few ▁days ▁later ▁that ▁it ▁was ▁the ▁ 1 9 th ▁province ▁of ▁Ira q . ▁ ▁Dis put e ▁over ▁the ▁financial ▁deb t ▁When ▁the ▁Iran – I ra q ▁War ▁broke ▁out , ▁K uw ait ▁initially ▁stayed ▁neutral ▁and ▁also ▁tried ▁medi ating ▁between ▁Iran ▁and ▁Ira q . ▁In ▁ 1 9 8 2 , ▁K uw ait ▁along ▁with ▁other ▁Arab ▁states ▁of ▁the ▁Pers ian ▁G ulf ▁supported ▁Ira q ▁in ▁order ▁to ▁cur b ▁the ▁Iran ian ▁Revolution ary ▁government . ▁In ▁ 1 9 8 2 – 1 9 8 3 , ▁K uw ait ▁began ▁sending ▁significant ▁financial ▁lo ans ▁to ▁Ira q . ▁K uw ait ' s ▁large - scale ▁economic ▁assistance ▁to ▁Ira q ▁often ▁triggered ▁host ile ▁Iran ian ▁actions ▁against ▁K uw ait .