United Nations Security Council resolution 986, adopted unanimously on 14 April 1995, after reaffirming all resolutions on Iraq and noting the serious humanitarian situation with the Iraqi civilian population, the council, acting under Chapter VII of the United Nations Charter, established a mechanism whereby Iraqi oil exports would finance humanitarian aid to the country, which later became known as the Oil-for-Food Programme.

Firstly, countries were authorised to permit the import of petroleum, petroleum products and related financial transactions originating in Iraq for a total sum of up to US$1 billion every 90 days, subject to the approval of the committee established in Resolution 661 and that payments made for oil would be made into the escrow account created by the current resolution.

[3] The account would: Countries were authorised, notwithstanding the provisions of Resolution 661, to export parts and equipment which are essential for the safe operation of the Kirkuk-Yumurtalik pipeline in Iraq and activities associated with it.

The resolution concluded by reaffirming that none of its provisions should affect Iraq's obligations concerning the repayment of foreign debt, and at the same time should not infringe on its sovereignty and territorial integrity.

[4][5] The programme was formally terminated on 21 November 2003 following the 2003 invasion of Iraq, and its major functions turned over to the Coalition Provisional Authority.