That basically how my Dad told it to me--the US made it seem like they considered Iraq and Kuwait's relationship to be entirely their affair, but then used it as a reason for war. What statements did US politicians make about the tensions before the war?
There is no evidence that the US knew of Iraq's plans regarding Kuwait.
In her only meeting held with Iraqi President Hussein one week before the invasion, US Ambassador April Glaspie expressed the US's concerns with the troops Iraq had massed on Kuwait's border and told Hussein that the US had no position on Iraq's border dispute with Kuwait, but wished for disputes to be settle peacefully. Hussein said that he was open to further negotiations.
The US State Department up to the invasion considered the matter to be best settled by Arab diplomacy.