United Nations Security Council resolution 706 decided on a mechanism to allow Iraq to sell oil in return for humanitarian aid from Member States.

The resolution, co-sponsored by the United States,[1] determined that Iraq could sell up to US$1.6 billion, following approval of each sale by the Security Council Committee established in Resolution 661 (1990).

The council went on to request the Secretary-General, in consultation with the International Committee of the Red Cross, to report back within 20 days regarding the implementation of the Resolution 687 regarding the repatriation of Kuwaiti and foreign nationals or their remains present in Iraq.

It also requested Iraq report monthly on the gold and foreign currency reserves it held in the country or elsewhere.

Iraq refused to sell the oil under this resolution, claiming it was a violation of its sovereignty and that it imposed a "guardianship" on its people.