I remember this like it was yesterday
Here's an article that speaks to the tensions in the months before the invasion
Iraq Threatens Emirates And Kuwait on Oil Glut
By YOUSSEF M. IBRAHIM, Special to The New York Times
Published: July 18, 1990
President Saddam Hussein of Iraq today openly threatened to use force against Arab oil-exporting nations if they did not curb their excess production, which he said had weakened oil prices and hurt the Iraqi economy.
The Iraqi leader did not mention particular countries by name in his nationally broadcast address today, but his warning was clearly aimed at Kuwait and the United Arab Emirates.
In the last few weeks, the Iraqi oil minister, Issam Abdul-Rahim al-Chalaby, has frequently singled out the two Arab nations, which have been producing oil at rates far above the quotas mandated by the Organization of Petroleum Exporting Countries, as the main culprits in the steep fall of oil prices in recent months.
President Hussein charged that the oil production policies of Kuwait and the United Arab Emirates had been the result of American influence, seeking to obtain cheap oil and harm Iraq, among other nations.
''The policies of some Arab rulers are American,'' the Iraqi leader was quoted as having said by news agencies from Baghdad. ''They are inspired by America to undermine Arab interests and security.''
President Hussein said, ''Iraqis will not forget the saying that cutting necks is better than cutting means of living.''
''O God almighty, be witness that we have warned them,'' he added. ''If words fail to protect Iraqis, something effective must be done to return things to their natural course and to return usurped rights to their owners.''
Mr. Hussein's threat is not being taken lightly in the Arab world. In response to the Iraqi leader's comments, two Arab officials said Baghdad might follow up on its threat with acts of terrorism or other forms of ''intimidation'' unless Kuwait and the United Arab Emirates abided by their production quotas.
The Iraqi leader's statements today mark the first time since the end of the Persian Gulf war that he has publicly threatened another Arab nation, although he was said to have issued a similar ultimatum in late June in a personal message to the Emir of Kuwait.
Both Kuwait and the United Arab Emirates provided financial backing for Iraq's eight-year war against Iran, which ended in an armistice in 1988. Two weeks ago, Iran and Iraq began to negotiate a final peace treaty with direct talks in Geneva.
Shifts in Area Underscored
President Hussein's threat, according to analysts and senior members of other Arab governments, underscores the shifts that have occurred in the region in the aftermath of the Iran-Iraq war and the importance the Iraqi leader places on the recent push for higher prices by three of OPEC's leading producers - Saudi Arabia, Iran and Iraq.
The speech by the Iraqi leader came a week after a group of OPEC oil ministers, including those from Saudi Arabia and Iraq, met to press Kuwait and the United Arab Emirates to restrict their production.
Indeed, the price of oil jumped more than $1.50 a barrel after that meeting, partly reversing a price slide of about $6 a barrel during the previous three months. Oil prices moved little today in response to President Hussein's comments.
To be sure, OPEC has failed many times before to force Kuwait and the United Arab Emirates, two small and independent-minded countries, to rein in their oil output. But this is the first time in a decade the three largest military and political powers in the gulf, Saudi Arabia, Iran and Iraq, have joined hands to bring about a greater sense of discipline to OPEC.
http://www.nytimes.com/1990/07/18/business/iraq-threatens-emirates-and-kuwait-on-oil-glut.html