The historical roots of Iraqi claims to Kuwait traced back to the Ottoman Empire's administrative arrangements and the arbitrary nature of colonial boundaries drawn by European powers during the early twentieth century, but these historical grievances masked more immediate economic and strategic motivations that drove Saddam's aggressive policies. Iraq had long viewed Kuwait as a natural extension of its territory, arguing that the emirate had been artificially separated from Basra province during the British mandate period and should rightfully be reunited with its historical homeland. However, the immediate catalyst for invasion was Iraq's desperate financial situation following eight years of war with Iran, during which Kuwait and other Gulf states had provided substantial loans that Saddam now demanded be forgiven while insisting that Kuwait reduce oil production to drive up prices and ease Iraq's fiscal crisis.