University and urban areas protested inflation and lack of political freedom. A massive upheaval occurred in the southern city of Ma'an. There was rioting in several cities over price increases in 1989. The same year saw the first general election since 1967. It was contested only by independent candidates because of the ban on political parties in 1963. Martial law was lifted and a period of rapid political liberalization began. Parliament was restored and some thirty political parties, including the Islamic Action Front, were created. Jordan did not participate directly in the Gulf War of 1990–91, but it broke with the Arab majority and supported the Iraqi position of Saddam Hussein. This position led to the temporary repeal of U.S. aid to Jordan. As a result, Jordan came under severe economic and diplomatic strain. After the Iraqi defeat in 1991, Jordan, along with Syria, Lebanon, and Palestinian representatives, agreed to participate in direct peace negotiations with Israel sponsored by the U.S. and Russia. Eventually, Jordan negotiated an end to hostilities with Israel and signed a declaration to that effect on July 25, 1994; the Israel-Jordan Peace Treaty was concluded on October 26, 1994, ending 46-year official state of war. Food price riots occurred in 1996, after subsidies were removed under an economic plan supervised by the International Monetary Fund. By the late 1990s, Jordan's unemployment rate was almost 25%, while nearly 50% of those who were employed were on the government payroll. The 1997 parliamentary elections were boycotted by several parties, associations and leading figures. In 1998, King Hussein was treated for lymphatic cancer in the United States. After six months of treatment he returned home to a rousing welcome in January 1999. Soon after, however, he had to fly back to the US for further treatment. King Hussein died in February 1999. More than 50 heads of state attended his funeral. His eldest son, Crown Prince Abdullah, succeeded to the throne. Reign of King Abdullah II Economy Economic liberalization policies under King Abdullah II have helped to create one of the freest economies in the Middle East. In March 2001, King Abdullah and presidents Bashar al-Assad of Syria and Hosni Mubarak of Egypt inaugurated a $300m (£207m) electricity line linking the grids of the three countries. In September 2002, Jordan and Israel agreed on a plan to pipe water from the Red Sea to the shrinking Dead Sea. The