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Although Iraq advanced several arguments in support of its actions, the basic reasons behind the invasion of Kuwait were the perennial ones that had led earlier Iraqi regimes to seek the same result: control of Kuwait’s oil and wealth, the military advantage of frontage on the Persian Gulf, Pan-Arabism under Iraqi leadership, and a way to generate popular support in the wake of its defeat in the Iran-Iraq War. On August 8 Iraq announced its annexation of Kuwait, in spite of condemnations from the United Nations, the major world powers, the Arab League, and the European Community (now the European Union). The vehement anti-Iraqi feelings harboured by virtually all Kuwaitis, in conjunction with diplomatic efforts by the Kuwaiti government-in-exile in Saudi Arabia, did not stop Iraq from harshly imposing its rule on Kuwait.

In mid-January 1991 a coalition of nations, acting under the authority of the United Nations and led by the United States and Saudi Arabia, began launching air strikes against Iraqi forces, and five weeks later it conducted a ground assault into Kuwait and Iraq. By late February Kuwait had been liberated from Iraqi control. As hundreds of thousands of Kuwaitis returned from foreign refuges to their homes in May, the full extent of the damage created by the invasion, looting, and war became clear.

The invasion and occupation affected every aspect of Kuwaiti life. More than half the population fled during the war. Although most nationals returned during 1991, many nonnationals, notably the Palestinians, were not permitted to do so. A division emerged between those who had stayed behind in the resistance and those who had fled. Another developed between the majority pressing for political liberalization (specifically, for parliamentary elections) and the ruling family, whose behaviour in exile had stirred considerable popular disfavour in Kuwait. The government’s initial response—instituting martial law and staging show trials—gave way as reconstruction proceeded to a more liberal stance. This led to elections to the National Assembly in 1992, in which Islamic candidates and independent candidates sympathetic to them were successful.

In 1992 a United Nations commission formally delimited the Iraqi-Kuwaiti border in accordance with a resolution of the UN Security Council passed in April 1991, which had reaffirmed the border’s inviolability. The commission’s findings were generally favourable to Kuwait, moving the Iraqi border slightly to the north in the area of Safwān and slightly north in the area of the contested Al-Rumaylah oil field and thereby giving Kuwait not only additional oil wells but also part of the Iraqi naval base of Umm Qaṣr. Kuwait accepted the UN’s border designation, but Iraq rejected it and continued to voice its claim to Kuwaiti territory.

The survival of the Baʿath regime of Saddam Hussein in Iraq spawned an ambient fear among Kuwaitis of a repeat of the events of 1990–91. A tense standoff atmosphere prevailed, exacerbated by Iraqi troop movements along the border, until 2003, when U.S. and British forces launched an invasion of Iraq, largely from bases inside Kuwait. The fall of the Baʿath regime in the Iraq War was greeted with great relief in Kuwait, which offered critical logistic support to the United States and its allies. However, the subsequent occupation of Iraq (and the attraction of some Kuwaitis to the guerrilla insurgency that it produced) led to new political tensions.

Political conflict and reform in the early 21st century

After suffering a stroke in 2001, Sheikh Jaber al-Ahmad al-Sabah, the ruling emir, carried out only few public activities. Following Sheikh Jaber’s death in 2006, crown prince Sheikh Saad al-Abdullah al-Salim al-Sabah briefly acceded as emir. Although considered too ill to rule, Sheikh Saad, who had been crown prince since the late 1970s, sparked a political crisis when he refused to abdicate in favour of Sheikh Sabah al-Ahmad al-Jaber al-Sabah, the country’s former foreign minister and already its de facto leader. The succession crisis was resolved after nine days, when the Kuwaiti parliament voted to remove him from office moments before Saad himself agreed to abdicate.

Political deadlock and crisis led to frequent legislative elections in Kuwait in the early 21st century, sometimes with less than a year between them. On several occasions, crises precipitated by potential inquiries of government figures and the votes of confidence that would likely ensue led Sheikh Sabah to dissolve the parliament and call for fresh elections. Although that sidestepped crisis in the short term, it left tensions between the royal family and the opposition in the parliament unresolved. At the same time, important political reforms did occur: in 2006 the 25-constituency system in place since 1980 was replaced with a new 5-constituency format meant to discourage voting along tribal lines and to make the buying of votes more difficult. Women won the right to vote in 2005, and in the legislative elections of May 2009, four female candidates became the first women to win seats in the parliament. In spite of such advances, observers suggested that the country’s patterned encounters with deadlock that only the emir was positioned to resolve would continue to recur unless the Kuwaiti political system was more thoroughly reorganized.

A period of unprecedented public dissent began in late 2011 when allegations of corruption provoked demonstrations by youth activists and members of the opposition, which resulted in the removal of the prime minister and the dissolution of the pro-government parliament. A new parliament, elected in February 2012 and dominated by the opposition, clashed frequently with cabinet ministers before it was dissolved by the Constitutional Court in June. Faced with the likelihood that new elections would produce another opposition-dominated parliament, in October the emir ordered changes to electoral rules that were widely seen as a means to guarantee a pro-government majority. The move brought thousands of Kuwaiti protesters into the streets, and police broke up demonstrations with tear gas and stun grenades. The opposition boycotted elections in December, which resulted in the lowest voter turnout in decades.

In the mid-2010s Kuwait, like other oil-producing countries, was forced to contend with a drop in oil prices that had begun in late 2014. Facing budget deficits, the Kuwaiti government cut its subsidies for electricity, water, and fuel, which had been among the highest in the world. These measures were praised by international development groups such as the International Monetary Fund (IMF) and the World Bank, but the sudden rise in consumer prices lent new strength to the political opposition in Kuwait. Opposition groups and candidates aligned with populist agendas won nearly half of the elected seats in the parliament in November 2016 in a vote that observers saw as a reflection of the public’s unhappiness with the government’s austerity program. The renewed tension between the government and the opposition-led parliament led to multiple cabinet dismissals while several austerity measures, such as the government’s plan to implement a value-added tax (VAT) in line with an international agreement among GCC member states, were either blocked or watered down. A rise in global oil prices at the close of the decade ultimately reduced the urgency of austerity, though the emir warned about the need to reduce the country’s reliance on oil.

In 2020 the price of oil fell once again, amid the global COVID-19 pandemic, and Kuwait’s ability to meet its expenses fell with it. At the time of Sheikh Sabah’s death in September, a standoff between parliament and the government over raising the debt ceiling remained unresolved. His half brother, Sheikh Nawaf al-Ahmad al-Jaber al-Sabah, acceded to the throne and opted to keep his predecessor’s ministers in place, but the parliamentary election in December registered broad discontent with the government’s handling of the debt crisis. Although many of the newly elected members of parliament sought to replace the legislative body’s speaker, who was considered favourable to the government, he retained the position in a narrow vote apparently decided by the votes of unelected cabinet ministers who participate in parliament. In January 2021, amid these ongoing tensions between the parliament and the government, members of parliament moved to question the prime minister over his cabinet appointments. The prime minister resigned but was reappointed days later by Sheikh Nawaf, who tasked him with forming a new cabinet.