WI Iraq wins the Iran-Iraq war

General Zod

Banned
Your scenario, should you choose to accept it, is a clear defeat of Khomeinist Iran in the Iran-Iraq war. Iraq achieves a significant long-term strategic breakthrough in the initial offensive (possible PoD: Iranian Air Force is mostly destroyed during the initial attack), so that they are able to conquer and hold both rivers of the Shatt-el-Arab and the whole Khuzestan province against any Iranian counterattack.
 
If it happens before he goes way deep into debt it might get rid of the invasion of Kuwaiit.

Indeed if the issue of the DMZ oil comes up he might be able to get his way through bluster and pressure.
 
Iraq keeps Khuzestan, and probably ignores Kuwait--at least longer than in OTL. Saddam stays in power due to the new wealth they gain (most of Iran's oil is in Khuzestan).

Iran and the Ayatollah are in trouble. They lost most of their wealth in the oil, and are reduced to normal-Third World instead of resource-rich Third World.
 
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