His fate is consequence of attacking Kuwait. Nothing to do with Iran. He was not weakened at all. In fact the end of war with Iran in 1988 Saddam has best armed and most trained army in Middle East excluding Israel.
At least read about the topic before your post about it, otherwise, it would be an embarrassment.
The Iraqi debt to Arab regimes because of war with Iran was the primary reason for rising of tensions that led to Kuwait invasion.
'Power' is not only about military. A bankrupt military power is as useful as a used toilet paper. At the end of the war with Iran, Iraq was in debt up to its neck. Arab regimes had gave him 60 billions during the war and Kuwait specifically gave him $17 billions. They demanded Iraq to return the money after it failed to achieve their objectives in war with Iran, while Saddam was insisting that he had 'saved' Arabs from Iran. The Gulfie refusal of forgiving Iraq's debts was the main reason why he invaded Kuwait, besides some historical claims on the country.
Actually, let's hear it from Saddam himself in his interrogations after his capture.
Saddam states reasons for Kuwait invasion | GulfNews.com
Saddam Hussain (High Value Detainee No 1) was interviewed on February 24, 2004 at a military detention facility at Baghdad International Airport (BIAP), Iraq. Saddam provided the following information:
Prior to the start of interview, Saddam was informed this session would be a continuation of the discussion of the history of Iraq. In particular, today's conversation would cover events leading up to the Iraqi invasion of Kuwait.
Saddam stated that after the war with Iran from 1980-88, Iraq was trying to rebuild. Saddam likened the situation with Kuwait as similar to when two individuals fight, the fight ends, and the two parties go their separate ways.
Thereafter, one of the previous disputing parties is bothered by someone else who also wants to fight. Then, there is no choice but to fight again.
According to Saddam, Ayatollah Khomeini and Iran would have occupied all of the Arab world if it had not been for Iraq. As such, Iraq expected the Arab world to support them during and after the war.
However,
Iraq saw the opposite regarding support, especially from Kuwait. At the end of the war as Iraq began the rebuilding process, the price of oil was approximately $7 (Dh25.71) per barrel.
In Saddam's opinion, Iraq could not possibly rebuild its infrastructure and economy with oil prices at this level. Kuwait was especially at fault regarding these low oil prices.
In an effort to solve the situation and stimulate economic recovery, Iraq sent Dr Sa'doum Hammadi, Iraqi Minister of Foreign Affairs to Kuwait.
Hammadi, and the Iraqi leadership's conclusion after the meeting was that the oil price situation was not just the responsibility/work of the Kuwaitis. Iraq believed some other entity, some larger power was behind this 'conspiracy'.
Iraq also sent government officials to Saudi Arabia to convince the Saudis to pressure Kuwait. In addition, the Saudi oil minister came to Iraq and held talks about oil prices, the Iraqi economy, and the actions of Kuwait.
Saddam claimed that a Kuwaiti official said, "We'll make the economy in Iraq so bad, one would be able to sleep with an Iraqi woman for ten dinars." Saddam told the Saudis that if Kuwait did not stop interfering in Iraqi affairs, he would make the Kuwaiti dinar worth ten fils.
Saddam stated that when Kuwait was faced with the facts regarding "stealing Iraqi oil using the practice of slant drilling, they admitted to having taken only two and a half billion barrels." They stated this fact as if it was not significant.
Regarding the problems with Kuwait, Iraq sent delegates to other Gulf countries which Saddam does not remember. These delegates explained the Kuwaiti situation and the Iraqi situation.
The other countries promised to correct oil prices at the next meeting of the Organisation of Petroleum Exporting Countries (Opec).
At the next Opec meeting, a decision was made to fix the oil price at $16-17 per barrel, as remembered by Saddam Kuwait concurred with this decision.
Thereafter, the Kuwaiti Minister of Oil or Minister of Foreign Affairs stated Kuwait would not abide by the Opec decision.
Regarding loan debts owed to Gulf countries as a result of support received during the Iran-Iraq War, Saddam stated these were not loans and were supposed to be free aid from these countries.
The countries had originally used the word "loan" as a formality only to disguise the purpose of the funds from Iran. When Iraq was informed the money was actually from loans, Iraq held discussions with these countries, including Kuwait, in order to resolve these debts.
Because the money had been "registered as loans" to Iraq, Iraq could not secure loans from other countries in order to rebuild.
Saddam stated that twice he discussed a change in oil prices to $25 per barrel. Once, when the price per barrel reached $50, Saddam dictated a letter to Tariq Aziz, which was sent to the Thoura newspaper.
In the letter, he told the oil producing countries that they should not take advantage of the industrialised nations. Saddam asked them to reduce the price per barrel to $25.
He commented that this was strange at the time as Iraq had oil and could use the money. When the price dropped to $7 per barrel in 1989-90, Saddam called for an increase to $24-25 per barrel. In Saddam's opinion, this price would not burden the consumer or hurt the producer.
Regarding the kind of message Kuwait's action or lack of action sent to Iraq, Saddam stated "this confirmed our information that there was a conspiracy" against Iraq, the Iraqi leadership, and Iraq's economy.
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You can read the rest in provided link. Here's more for you to read:
http://mcadams.posc.mu.edu/blog/harak.html
You showed pic of Saddam in hands of American soldiers and boasted about it.
I showed the pic to show the fate of the lapdog that once was supported by west and Arabs, then destroyed by them