Ba'athist Iraq reducing international oil prices, further weakened the Iraqi economy. In response to this, Saddam threatened Kuwait that, unless it reduced its oil output, Iraq would invade. Negotiations broke down, and on 2 August 1990, Iraq launched an invasion of Kuwait. The resulting international response led to the Persian Gulf War, which Iraq lost. The United Nations (UN) initiated economic sanctions in the war's aftermath to weaken the Ba'athist Iraqi regime. The country's economic conditions worsened during the 1990s, and at the turn of the 21st century, Iraq's economy started to grow again as several states ignored the UN's sanctions. In
Palestinian exodus from Kuwait (1990–91) Palestinian exodus from Kuwait (1990–91) The Palestinian exodus from Kuwait took place during and after the Gulf War. There were 400,000 Palestinians in Kuwait before the Gulf War. During the Iraqi occupation of Kuwait, 200,000 Palestinians left Kuwait due to various reasons (fear of persecution, food shortages, medical care difficulties, financial shortages, fear of arrest and mistreatment at roadblocks by Iraqis). After the Gulf War of 1991, nearly 200,000 Palestinians fled Kuwait, partly due to economic burdens, regulations on residence and fear of abuse by Kuwaiti security forces. The policy which partly led to this exodus was a response to