They weren't actually communists to begin with. They just wanted independence from France. It's just that communists were the only ones who were willing to help them, so that's who they ended up allying themselves with.
As for the Gulf War, it's just common sense, really... we bought oil from both Kuwait and Iraq, so financially speaking why should it matter which one we were buying it from? If anything, the first Gulf War actually made gas prices worse because the Iraqi army burned Kuwait's oil fields as they retreated - destroying a bunch of oil, and also preventing further production until Kuwait had a chance to repair its oil wells.
And I had already mentioned the trade thing, and Nyan pooh-poohed saying "trade doesn't matter in this scenario."