In retaliation for Amman’s perceived pro-Iraqi stance, up to 400,000 Jordanians of Palestinian origin who had lived and worked in Kuwait were expelled after the conflict, thereby eliminating a crucial flow of remittances. The UN sanctions closed the vital Iraqi petroleum market and forced Jordan to buy oil elsewhere, on harsher financial terms. Aid from the US and the Gulf declined. Jordan’s Central Bank estimated that, in 1990 alone, the Kuwait crisis cost the kingdom USD 1.5 billion, equivalent to 35 percent of its 1989 GDP. Starting in 1992, Jordan distanced itself from Iraq, but only with its peace treaty with Israel in 1994 did Amman manage to rehabilitate itself in US eyes; a rapprochement with the Gulf States was not achieved until the late 1990s.
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