▁invasion ▁of ▁a ▁fellow ▁O PE C ▁member . ▁Last ing ▁only ▁nine ▁months , ▁the ▁price ▁sp ike ▁was ▁less ▁extreme ▁and ▁of ▁shorter ▁duration ▁than ▁the ▁previous ▁oil ▁cr ises ▁of ▁ 1 9 7 3 – 1 9 7 4 ▁and ▁ 1 9 7 9 – 1 9 8 0 , ▁but ▁the ▁sp ike ▁still ▁contributed ▁to ▁the ▁re cess ion ▁of ▁the ▁early ▁ 1 9 9 0 s . ▁A verage ▁month ly ▁price ▁of ▁oil ▁rose ▁from ▁$ 1 7 ▁per ▁bar rel ▁in ▁July ▁to ▁$ 3 6 ▁per ▁bar rel ▁in ▁October . ▁As ▁the ▁U . S .- led ▁coal ition ▁experienced ▁military ▁success ▁against ▁Ira qi ▁forces , ▁concerns ▁about ▁long - term ▁supply ▁short ages ▁e ased ▁and ▁prices ▁began ▁to ▁fall . ▁ ▁Ira qi ▁invasion ▁of ▁K uw ait ▁and ▁en su ing ▁economic ▁effects ▁ ▁On ▁August ▁ 2 , ▁ 1 9 9 0 , ▁the ▁Republic ▁of ▁Ira q ▁inv aded ▁the ▁State ▁of ▁K uw ait , ▁leading ▁to ▁a ▁seven - month ▁occupation ▁of ▁K uw ait ▁and ▁an ▁event ual ▁U . S .- led ▁military ▁inter vention . ▁While ▁Ira q ▁officially ▁claimed ▁K uw ait ▁was ▁ste aling ▁its ▁oil ▁via ▁sl ant ▁dr illing , ▁its ▁true ▁mot ives ▁were ▁more ▁complicated ▁and ▁less ▁clear . ▁At ▁the ▁time ▁of ▁the ▁invasion , ▁Ira q ▁ow ed ▁K uw ait ▁$ 1 4 ▁billion ▁of ▁out standing ▁deb t