Different Iraqi strategy in Kuwait

Was wondering what possible strategy Saddam could have pursued in Kuwait prior to what became the Gulf War. I was wondering if it would have been better for him to set up a puppet regime in Kuwait, as opposed to outright annexation, perhaps inviting the Emir back to rule Kuwait (which I guess would be crucial because just founding whatever government Saddam wants is tantamount to annexation as far as the rest of the world is concerned) provided he agree to major concession to the Iraqis, maybe set up a temporary military occupation of the country with the intention of leaving but using his ongoing control of Kuwait as a bargaining chip. Is there any scenario that doesn't end in US intervention? What about sanctions (the harsh ones that existed IOTL, not just any kind of sanctions), are they inevitable following Iraqi invasion of Kuwait?
 
Was wondering what possible strategy Saddam could have pursued in Kuwait prior to what became the Gulf War. I was wondering if it would have been better for him to set up a puppet regime in Kuwait, as opposed to outright annexation, perhaps inviting the Emir back to rule Kuwait (which I guess would be crucial because just founding whatever government Saddam wants is tantamount to annexation as far as the rest of the world is concerned) provided he agree to major concession to the Iraqis, maybe set up a temporary military occupation of the country with the intention of leaving but using his ongoing control of Kuwait as a bargaining chip. Is there any scenario that doesn't end in US intervention?

The US wouldn't attack if Iraq pulled out in time. But once Saddam invaded Kuwait he was deemed too untrustworthy and dangerous to just let the situation revert to what it was before. I doubt any puppet regime cold survive without a continuing occupation, guaranteeing war.

What about sanctions (the harsh ones that existed IOTL, not just any kind of sanctions), are they inevitable following Iraqi invasion of Kuwait?

Yes, they were quickly imposed.
 
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