1990 oil price shock and prices began to fall. On August 2, 1990, The Republic of Iraq invaded the State of Kuwait, leading to a 7-month occupation of Kuwait and an eventual U.S.-led military intervention. While Iraq officially claimed Kuwait was stealing its oil via slant drilling, its true motives were more complicated and less clear. At the time of the invasion, Iraq owed Kuwait $14 billion of outstanding debt that Kuwait had loaned it during the 1980–1988 Iran–Iraq War. In addition, Iraq felt Kuwait was overproducing oil, lowering prices and hurting Iraqi oil profits in a time of financial stress. In the buildup
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