Kuwait Kuwait declined an Iraqi request to forgive its US$65 billion debt. An economic rivalry between the two countries ensued after Kuwait increased its oil production by 40 percent. Tensions between the two countries increased further in July 1990, after Iraq complained to OPEC claiming that Kuwait was stealing its oil from a field near the border by slant drilling of the Rumaila field. In August 1990, Iraqi forces invaded and annexed Kuwait. After a series of failed diplomatic negotiations, the United States led a coalition to remove the Iraqi forces from Kuwait, in what became known as the Gulf War.
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