The sanctions and embargo never crumbled, Iraq and its infrastructure did.
Then how was Saddam selling BILLIONS of dollars of oil on the black market by the summer of 2002:
Here is some reading you need to do to educate yourself on the crumbling of the sanctions and embargo on Iraq
"Syrian-Iraqi Trade Reached $2 Billion in 2001," Middle East News Agency, May 27, 2002
"Iraq Caught Smuggling Oil, UN Official Says," The Washington Post, October 26, 2001
Michael Slackman, "Oil Barrels Fuel Baghdad's Clout in the Region" Los Angeles Times, May 8, 2002
Gary C. Gambill, "Iraq Returns to the Regional Stage," Middle East Intelligence Bulletin, vol. 2, no. 9 (October 5, 2000)
Nicholas Berry, "
China , Fiber-Optics and Iraq," Center for Defense Information, February 26, 2001
Freedman and Stecklow, "How Iraq Reaps Illegal Oil Profits," p. A1
"Dancing On Sanctions Grave," Middle East Economic Digest, December 8, 2000
"Delhi Company Fuelled Iraq's Weapons System," Daily IRNA, June 6, 2002
Susan Blaustein and John Fawcett, "Sources of Revenue for Saddam & Sons, Inc.," Coalition for International Justice, draft manuscript, June 28, 2002, pp. 24-45
"The Oil 'Top-Off': Another Way Iraq Cheats UN," The Wall Street Journal, May 2, 2002
"Iraq Accused of Smuggling Illegal Oil," Los Angeles Times, October 26, 2001
"Illegal Oil Surcharges Earn Baghdad Extra $300 Million," Radio Free Europe/Radio Liberty, May 10, 2002
"Iraq Earned $6 Billion Illegally," Associated Press, May 29, 2002
"
Turkey: Iraqi Diesal Trade Seen as Too Valuable to Stop," Radio Free Europe/Radio Liberty, August 4, 2000
"Indian Arrested for Allegedly Exporting Arms Material to Iraq," Associated Press, June 6, 2002
"US Shifts Attack on Iraq Trade; Border States Seen as Key to Enforcing Sanctions," The Washington Post, March 26, 2001
"The Baghdad Dilemma," Middle East Economic Digest January 18, 2002
The Economist Intelligence Unit, "EIU Country Report: Iraq," March 2002