Why did Yasser Arafat’s support for Iraq in the Persian Gulf War hurt the PLO?

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Yasser Arafat’s decision to support Iraq during the 1990–91 Persian Gulf War significantly harmed the Palestine Liberation Organization (PLO) by alienating its key financial donors among the Persian Gulf oil states.1

This loss of financial support weakened the organization's position and contributed to a further softening of its stance regarding peace with Israel. Following this period of diplomatic and financial isolation, the PLO under Arafat’s leadership entered into secret negotiations with Israel in 1993, which ultimately led to the Oslo Accords and the establishment of the Palestinian Authority.12