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
Palestinians in Iraq had been forcibly drafted by the invading Iraqi army, and they and their families were allowed to resettle in Iraq. Following the 1967 war with Israel, a second larger wave of Palestinians sought refuge in Iraq. The third and final wave occurred in 1991 after the Iraqi invasion of Kuwait, when those Palestinians living in Kuwait fled. Over the years, there were also many Palestinians who came to Iraq in search of work. Prior to 2003, there were approximately 25,000 registered Palestinian refugees living in Iraq. In December 2010, approximately 10,000 Palestinians remained in Iraq, the majority of whom were