Ras Al Khafji (رأس الخفجي) or Khafji (الخفجي) is a town on the border between Saudi Arabia and Kuwait. It lies in what was before 1970 a neutral zone between Kuwait and Saudi Arabia. The Japanese-owned Arabian Oil Company Ltd signed a concession agreement with the government of Saudi Arabia in December 1957 and with the government of Kuwait in July 1958 for exploration and development of hydrocarbon reserves in the offshore Neutral Zone. The Arabian Oil Company discovered the Kafji oil field in 1960 and the Hout oil field in 1963.

It was only after the discovery of these oil deposits off-shore of Khafji that a permanent demarcation of the neutral zone between Kuwait and Saudi Arabia was established, with Khafji formally located within Saudi Arabia.^{[citation needed]} However, the agreement concluded that both states would still maintain joint rights to all natural resources within the designated neutral zone. With the termination of the Arabian Oil Company lease to explore and extract within the area, operations within the Khafji Fields reverted to a joint venture between shareholder companies representing both states, with production being split on a 50:50 agreement between Kuwait and Saudi Arabia.

Saddam Hussein Abd al-Majid al-Tikriti (Arabic: صدام حسين عبد المجيد التكريتي Ṣaddām Ḥusayn ʿAbd al-Maǧīd al-Tikrītī; 28 April 1937 – 30 December 2006) was the fifth President of Iraq, serving in this capacity from 16 July 1979 until 9 April 2003. A leading member of the revolutionary Arab Socialist Ba'ath Party, and later, the Baghdad-based Ba'ath Party and its regional organisation Ba'ath Party – Iraq Region, which espoused ba'athism, a mix of Arab nationalism and Arab socialism, Saddam played a key role in the 1968 coup, later referred to as the 17 July Revolution, that brought the party to long-term power of Iraq.

As vice president under the ailing General Ahmed Hassan al-Bakr, and at a time when many groups were considered capable of overthrowing the government, Saddam created security forces through which he tightly controlled conflict between the government and the armed forces. In the early 1970s, Saddam nationalized oil and other industries. The state-owned banks were put under his control, leaving the system eventually insolvent mostly due to the Iran–Iraq War, the Gulf War, and UN sanctions. Through the 1970s, Saddam cemented his authority over the apparatuses of government as oil money helped Iraq's economy to grow at a rapid pace. Positions of power in the country were filled with Sunnis, a minority that made up only a fifth of the population.