At this same time the pearl industry was beginning to collapse, but oil was discovered in the late 1930s, shifting the economy forever. Due to the oil, during World War II the British took control of the region to prevent the Axis powers from gaining the oil and in order to maintain a steady stream of oil for the war.
In 1961 the United Kingdom granted Kuwait full independence. This immediately led to threats from Iraq of invasion, but with British and Saudi Arabian support the attacks never happened, although it established poor relations between the two countries that would last for years.
In the 1980s when Iraq and Iran went to war, Kuwait feared Iran more than Iraq, which led to the support of Iraq. In retaliation, Iran attacked the oil industry in Kuwait, leading to intervention from the United States on Kuwait's request. However, by 1990 the larger threat was from Iraq as they invaded the country to gain their oil supply and a deep water port on the Persian Gulf.
In just six days the Iraqis had taken the country of Kuwait as numerous people were killed. However with this invasion, Saudi Arabia and the United States moved in to defend Kuwait. Although it took them nearly six months to get involved, it only took them four days to remove the Iraqis from the country.
After the war Kuwait essentially cut off political ties to Iraq and has since maintained focusing on economic development. The country's huge oil industry has encouraged numerous foreigners to find temporary work in the country as today just under half the population actually holds citizenship.