Iraq’s invasion of Kuwait shocked the oil market. Prices skyrocketed from US$17 per barrel in July 1990 to US$46 per barrel by mid-October. There was a fear of a prolonged shortage.
The long shadow of the 1991 Gulf War looms large on the commodity market today. That conflict may seem distant to many readers. Fax machines were in use. Drone strikes were not.
In August 1990, Saddam Hussein invaded Kuwait. Iraq had a standing army of over 1 million soldiers and a potent air force. Kuwait was an oil-rich state with a minor military. It crumbled in a few hours.
