In the early 1980s, Kuwait experienced a major economic crisis after the Souk Al-Manakh stock market crash and decrease in oil price.[100]
During the Iran–Iraq War, Kuwait supported Iraq. Throughout the 1980s, there were several terror attacks in Kuwait, including the 1983 Kuwait bombings, hijacking of several Kuwait Airways planes and attempted assassination of Emir Jaber in 1985. Kuwait was a regional hub of science and technology in the 1960s and 1970s up until the early 1980s,[101] the scientific research sector significantly suffered due to the terror attacks.[101]
Oil fires in Kuwait in 1991, which were a result of the scorched earth policy of Iraqi military forces retreating from Kuwait.
After the Iran–Iraq War ended, Kuwait declined an Iraqi request to forgive its US$65 billion debt.[102] An economic rivalry between the two countries ensued after Kuwait increased its oil production by 40 percent.[103] Tensions between the two countries increased further in July 1990, after Iraq complained to OPEC claiming that Kuwait was stealing its oil from a field near the border by slant drilling of the Rumaila field.[103]