Iraq's ability to do large scale damage took a hit too
Perhaps from the some points of view .. however iOTL
- 2 million casualties in the Iran Iran Iraq war
- ends August 1988
- al Anfa genocide until at least 1989, of course anti Kurd actions were ongoing anyway
- other mass murders in Iraq continue
- Invasion of Kuwait August 1990
- Feb 1991 Iraqi defeat with 100K casualties and billions of $ in damages
- Marsh Arab revolt encouraged by US and suppressed ...
I think its a reasonable point of debate as to how much of that happens with the suggested POD