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) other sectors continued throughout October. The Iraqis also put pressure on the PLO office in Kuwait, which had refused to organize any Palestinian demonstrations and rallies in support of Iraq. The only Palestinian demonstration in Kuwait during the Iraqi occupation was actually a pro-Kuwait demonstration, with the Palestinian inhabitants of the Hawalli district waving photos of the Emir. Kuwait's lack of support for Palestinians after the Gulf War was a response to the alignment of Palestinian leader Yasser Arafat and the PLO with Saddam Hussein, who had earlier invaded Kuwait. On March 14, 1991, 200,000 Palestinians were still residing in