Gary Dorsch (Global Money Trends) submits: More than 100,000 Iraqi soldiers backed up by 700 tanks invaded the Gulf state of Kuwait in the early hours of August 2, 1990. Saddam Hussein threatened to turn Kuwait city into a "graveyard" if any other country dared to challenge the "take-over by force". In the weeks prior to the invasion, Saddam accused Kuwait of flooding the world market with oil and has demanded compensation for oil produced from a disputed oil field on the border of the two countries.
In response to the news of the invasion the price of oil rose more than doubled to as high as $40 per barrel, and stock markets around the world plunged amid fear of an energy crisis. But in those days, the British pound was regarded as the world’s “Petro-currency