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) force. The massive exodus of Palestinians from Kuwait began with the Iraqi invasion into the country in summer 1990. The exodus included both Kuwaitis and Palestinians, who were forming a large percentage of Kuwaiti residents. Out of initial 350,000 people of Palestinian descent who resided in Kuwait in mid-1990, more than 200,000 fled Kuwait during the Iraqi occupation of Kuwait, due to harassment and intimidation by Iraqi security forces, in addition to getting fired from work by Iraqi authority figures in Kuwait. The Iraqi education ministry in Kuwait fired 3,000 Palestinians in September 1990, and the dismissals of Palestinians from