Direct proof of use
U.S. Army historical material directly records 2.75-inch Hydra-70 rocket use in the 1990 Gulf War. Redstone Arsenal's history of Operation Desert Shield and Desert Storm says AH-64 Apaches from the 101st Airborne Division fired Hellfire missiles and 2.75-inch Hydra-70 rockets at 0238 on January 17, 1991, destroying Iraqi early-warning radar sites in the opening attack of Operation Desert Storm.
Army University Press gives the same mission context in its Task Force Normandy account. It describes the mission plan as using AH-64 Apaches with Hellfire missiles, Hydra-70 rockets, and 30 mm guns, then reports that the Apaches fired rockets and cannon after their Hellfire missiles and expended 100 Hydra-70 rockets during the attack.
Sources: Redstone Desert Shield Desert Storm Role, Army University Press Task Force Normandy
Timeline
The documented combat-use milestone is the first night of Operation Desert Storm. On January 17, 1991, eight U.S. Army AH-64 Apaches crossed into Iraq as part of Task Force Normandy to open a corridor through Iraq's air-defense network before the coalition air campaign.
The Apaches attacked two Iraqi early-warning sites just before the wider air campaign. Redstone Arsenal identifies the Hydra-70 rockets as part of the weapons fired at 0238, while Army University Press records the expenditure of 100 Hydra-70 rockets before the helicopters returned south.
Sources: Redstone Desert Shield Desert Storm Role, Army University Press Task Force Normandy
Narrative
In this record, 2.75-inch rockets refers to the U.S. 70 mm unguided air-launched rocket family, with Hydra-70 as the modern Mk 66-based line. General Dynamics describes Hydra 70 as a 2.75-inch / 70 mm rocket system built from a Mk 66 MOD 4 motor, selectable warheads, and associated fuzes, fired from seven- and 19-tube launchers on fixed- and rotary-wing aircraft including Apache helicopters.
The Gulf War evidence centers on U.S. Army use rather than Iraqi possession or transfer. The Redstone history says Hydra-70 was among the Army rocket and missile systems deployed to Southwest Asia and fired in combat during Operation Desert Storm, and it identifies the Task Force Normandy attack as one of the opening uses. Army University Press adds that some rockets fired in the radar-site attack were flechette rockets used against wiring and cables at the sites, while the page's sourced claim remains limited to documented U.S. AH-64 employment in that mission.
Sources: GD-OTS Hydra 70 Product Brochure, Redstone Desert Shield Desert Storm Role, Army University Press Task Force Normandy