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The war was ignited by a claim made by Iraqi spokespersons that said that Iran had been engaging in artillery attacks on Iraqi towns since Sept. 4.
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The Kuwaiti government supports the Iraqi army by providing a total of 15 billion dollars. This money is used to fund the Iraqi attacks as the Kuwaitis fear that tension could later involve the country Kuwait, rendering it defenseless at the mercy of the Persians.
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This event caused tentions between Iraq and Kuwait as the reason for the loan by Kuwait was that it would guarantee protection from the persian forces, and therefore Iraqi was not counting on giving the money back.
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Kuwait was exporting way more oil than it should have at a cheaper rate than other countries, thereby creating an oil glut, lowering the prices of oil and making it harder for Iraq to repay their loan.
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The Kingdom of Saudi Arabia decides that it should have a role in the negotiations between the tense countries. They host talks and try to come to an unbiased solution.
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The talks break down between Kuwait and Iraq. These countries failed to come to a satisfying agreement.
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Iraq invades Kuwait in less than a day. They have waged war with the rationalization that Kuwait has been steeling oil, overselling it, and that Iraq should have the rights to the oil because Kuwait was an Iraqi province.
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The USA alerts Saudi of a possible threat of invasion by the Iraqi army.. This makes Saudis panic and request aid from the American army, resulting in the deployment of 500,000 American troops in Saudi Arabia.
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The United Nations council intervenes by proclaiming that Iraq must retreat and leave Kuwait. The US gives an ultimatum to which the Iraqis choose not to reply.
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The US Army has declared war on the Iraqis. Operation Desert Storm. The plan was to destroy all Iraqi infrastructures, targetting water and electrical supplies. This rendered Iraq voulnerable to American attacks.
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As Iraqis were forced to retreat, they applied a very selfish technique which underlined: If I can't have it, you can't either. They set all the oil wells in Kuwait on fire, resulting in the loss of billions of dollars worth of petroleum.