The
Iran–Iraq War ended in August 1988, leaving Iraq militarily strong but economically strained. Iraq had accrued massive debts (estimated at \$60–80 billion) during the war, much of it owed to Gulf Arab states like Saudi Arabia and Kuwait that had financially backed Baghdad's war effort. Although Iraq emerged claiming a sort of victory, the war's end removed the common threat (revolutionary Iran) that had unified Iraq with its Arab neighbors. Almost immediately, new uncertainties arose about Iraq's post-war intentions and its role in the Gulf. Saddam Hussein's regime was financially burdened and seeking regional leadership, promoting itself as the champion of Arab nationalism after fighting Iran. During the war with Iran, Saudi Arabia and Iraq had maintained strong if quiet cooperation, as Riyadh funneled financial support to Baghdad to counter Iranian influence. This oil policy was a subtle way to constrain Saddam's regional ambitions by limiting his revenue – an objective that was formally registered in the 1989 nonaggression pact itself. Notably, the inclusion of North Yemen in the ACC raised red flags in Riyadh. North Yemen bordered Saudi Arabia, and there was long-standing Saudi interest in Yemeni affairs; seeing Sanaa tilt toward Baghdad's orbit was unsettling. Moreover, Iraq and ACC members began taking stances that worried the Gulf rulers – for example, in early 1990 at an ACC meeting, Saddam Hussein called for U.S. naval forces to withdraw from the Gulf, a posture that confirmed Gulf leaders’ suspicions about the ACC's political motives. The power imbalance created by the ACC spurred Saudi Arabia to action. The prospect of Iraq potentially coordinating with Egypt and Jordan on security matters (even if the ACC initially had no formal military component) was threatening for Saudi Arabia, Kuwait, and even Syria and Israel. Recognizing this unease, King Fahd undertook a diplomatic tour in March 1989 to Baghdad and Cairo, seeking clarity and assurances about the ACC's intentions. His trip was partly motivated by anxiety that Iraq's newfound bloc could herald a shift in the regional balance of power. In Baghdad, Fahd conferred with Saddam and conveyed the kingdom's concerns directly. According to contemporary analyses, Saudi Arabia was sufficiently concerned by Iraq's assertive pan-Arab positioning that it sought concrete assurances to clarify Baghdad's intentions. == Details ==