It is commonly believed that Mubarak's coup was assisted by the British government.
In January 1899, Mubarak signed an agreement with the British which pledged that Kuwait would never cede any territory nor receive agents or representatives of any foreign power without the British Government's consent. In essence, this policy gave Britain control of Kuwait's foreign policy. The treaty also gave Britain responsibility for Kuwait's national security. In return, Britain agreed to grant an annual subsidy of 15,000 Indian rupees (�11,500) to the royal family.
The convention ruled that Shaikh Mubarak had authority over an area extending out to a radius of 80km, from the capital. This region was marked by a red circle and included the islands of Auhah, Bubiyan, Failakah, Kabbar, Mashian, and Warba. A green circle designated an area extending out an additional 100km, in radius, within which the qaimmaqam was authorized to collect tribute and taxes from the natives.
In May 1920 ibn Saud's Wahhabi Bedouins of Nejd had attacked a Kuwaiti detachment in southern Kuwait, forcing its retreat. In October they raided Jahra, 40km from the capital. In response, the British deployed gunboats, armoredc cars, and aircraft. The Bedouins withdrew.
In response to the various Bedouin raids, the British High Commissioner in Baghdad, Sir Percy Cox, imposted the Uqair Protocol of 1922 which defined the boundaries between Iraq and Nejd; and between Kuwait and Nejd.
On April 1, 1923, Shaikh Ahmad al-Sabah wrote the British Political Agent in Kuwait, Major John More, "I still do not know what the border between Iraq and Kuwait is, I shall be glad if you will kindly give me this information." More, upon learning that al-Sabah claimed the outer green line of the Anglo-Ottoman Convention (April 4), would relay the information to Sir Cox.
On April 19, Six Cox stated that the British government recognized the outer line of the Convention as the border between Iraq and Kuwait. This decision limited Iraq's access to the Persian Gulf at 58km of mostly marshy and swampy coastline. As this would make it difficult for Iraq to become a naval power (the territory did not include any deepwater harbours), the Iraqi King Faisal I did not agree to the plan, however, as his country was under British rule, he had little say in the matter. Iraq and Kuwait would formally ratify the border in August. The border was re-recognized in 1927.
By early 1961, the British had withdrawn their special court system, which handled the cases of foreigners resident in Kuwait, and the Kuwaiti Government began to exercise legal jurisdiction under new laws drawn up by an Egyptian jurist. On June 19, 1961, Kuwait became fully independent following an exchange of notes with the United Kingdom.
The boundary with Saudi Arabia was set in 1922 with the Treaty of Uqair following the Battle of Jahrah. This treaty also established the Kuwait-Saudi Arabia Neutral Zone, an area of about 5,180 sq. km. (2,000 sq. mi.) adjoining Kuwait's southern border. In December 1969, Kuwait and Saudi Arabia signed an agreement dividing the Neutral Zone (now called the Divided Zone) and demarcating a new international boundary. Both countries share equally the Divided Zone's petroleum, onshore and offshore.
Kuwait's northern border with Iraq dates from an agreement made with Turkey in 1913. Iraq accepted this claim in 1932 upon its independence from Turkey. However, following Kuwait's independence in 1961, Iraq claimed Kuwait, under the pretense that Kuwait had been part of the Ottoman Empire subject to Iraqi suzerainty. In 1963, Iraq reaffirmed its acceptance of Kuwaiti sovereignty and the boundary it agreed to in 1913 and 1932, in the "Agreed Minutes between the State of Kuwait and the Republic of Iraq Regarding the Restoration of Friendly Relations, Recognition, and Related Matters."
In the 1980s Kuwait, fearful of Iran after the Iranian Revolution supported Iraq in the Iran-Iraq war. Kuwait sent large sums of money to Iraq. As a consequence of this Iran attacked Kuwait's oil tankers, and Kuwait was forced to seek protection from the United States, which sent warships to the gulf.
On August 2, 1990, Iraq nevertheless invaded Kuwait but was forced out 7 months later by a United Nations coalition led by the United States in its Gulf War. Following several weeks of aerial bombardment, a US-led UN coalition began a ground assault on February 23, 1991 that completely liberated Kuwait in four days. After liberation, the UN, under Security Council Resolution 687, demarcated the Iraq-Kuwait boundary on the basis of the 1932 and the 1963 agreements between the two states. In November 1994, Iraq formally accepted the UN-demarcated border with Kuwait, which had been further spelled out in Security Council Resolutions 773 and 883.
Kuwait has spent more than $five billion dollars to repair oil infrastructure damaged during 1990-1991 (see Kuwaiti oil fires).