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KUWAIT (Reuters) - Two people were injured on Thursday when Kuwaiti coastguards confronted and foiled an attempt by an Iraqi vessel to enter Kuwaiti territorial waters, the state news agency KUNA reported.

KUNA said that four armed men aboard the Iraqi craft had threatened the patrol boat with weapons as it tried to stop them entering.

"The coastguards dealt with the situation appropriately and managed to seize the boat and arrest the people on board," KUNA said.

It said one Kuwaiti security man and an Iraqi man had been lightly injured.

In February, a number of Iraqis demonstrated on the Iraqi side of the border after lawmakers accused the Baghdad government of surrendering the right to navigation in the Khor Abdallah waterway between the two countries to Kuwait.

The Western-allied Gulf Arab state remains suspicious of Iraqi intentions since Iraqi President Saddam Hussein invaded in 1991, triggering a U.S.-led international intervention to expel Iraqi forces.

(Reporting by Ahmed Hagagy; writing by Sami Aboudi; Editing by Kevin Liffey)

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Reuters