Iraq Risk Management Report: Unrest as relations with KRG deteriorate; rising oil production buoys economy

Insurgent attacks continue to expose Iraq’s fragility. Dozens of civilians have already been killed in 2013, including 27 Shiites killed by a suicide bomber as they waited at a bus stop to return home from Arbaeen rites in Kerbala. In mid-December, dozens were killed in a series of attacks in disputed northern territories at the heart of a Kurdish-Iraqi standoff. Pressure has been building there since November, when Baghdad set up a new military command, to the outcry of the Kurdish Regional Government. There have also been massive anti-government street protests by Sunnis in recent weeks, prompted by grievances including marginalisation, anti-terrorism laws and the state of public services.