Gulf War Challenge!

With a POD no earlier than August 1st, 1990, create a scenario in which Saddam's Iraq gets to keep Kuwait and doesn't have the restrictions that were given in OTL. It can be one in which there is no shooting war, a different version of Desert Shield, or (extra points here) one in which Saddam's Iraq actually holds off the Allies.
 
Saddam builds his Osirak reactor underground and at an earlier date than in OTL. The Israelis miss this and don't bomb it. The Iran-Iraq war starts like in OTL, only this time Saddam nukes the Iranis and forces them to sue for peace, giving up oilfields to Iraq.
In 1990 Iraq invades Kuwait and gets to keep it after striking a deal with the Saudis: Saddam does not attack them and in return all Arab nations agree not to allow US or western forces to stage an operation on Iraq from their soil.
On March, 3rd 1998 three nuclear devices inside Israel, killing millions. During the course of the rest of the day over 150 nuclear warheads of the IDF hit Iraqi military bases and cities.
 
With a POD no earlier than August 1st, 1990, create a scenario in which Saddam's Iraq gets to keep Kuwait and doesn't have the restrictions that were given in OTL. It can be one in which there is no shooting war, a different version of Desert Shield, or (extra points here) one in which Saddam's Iraq actually holds off the Allies.

That's easy. The "give sanctions a chance to work" brigade get their way and we're still sitting here "waiting for sanctions to work".
 
MUC - If Irag ever nuked Israel, Irag would cease to exist. Period. That would be a bad move for every Arab within 500 miles of Israel. The Palestinians probably would get exterminated in that scenario, and the Israelis would not stop at blasting Iraq, either. Cairo, Riyadh, Damascus, Amman and probably Tehran and Tripoli would get smoked by IDF nukes as well.
 
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