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With its small size and enormous oil wealth, Kuwait occupies a strategic position at the head of the Persian Gulf.
Forty kilometers away is Iran, who had proclaimed its aim of exporting its Iranian Revolution ; while the other powerful neighbor, Iraq, had repeatedly challenged Kuwait's legitimacy and subsequently invaded Kuwait twice.
Fearful of the radical leadership in Iran, Kuwait aided Iraq during the Iran-Iraq War by permitting the transshipment of goods across its territory and by loans of about six billion US dollars.
Kuwait responded to terrorist bombings and other violence inspired by Iran by intensifying its military cooperation with the GCC and by building up its own military.
Formally neutral and reluctant to become involved with the great powers except as a last resort, Kuwait turned to the United States, the Soviet Union and Britain for naval protection of its tanker fleet after twenty-one ships were attacked in the gulf since late 1986.

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