Operation Iraqi Freedom succeeded in overthrowing Saddam Hussein, but Iraq remains unstable because of Sunni Arab resentment and a related insurgency, now compounded by Sunni-Shiite violence that some believe is a civil war. According to its November 30, 2005, "Strategy for Victory," the Bush Administration indicates that U.S. forces will remain in Iraq until the country is able to provide for its own security. Mounting U.S. casualties and financial costs -- without clear signs of security progress -- have intensified a debate within the United States over the wisdom of the invasion and whether to wind down U.S. involvement without completely accomplishing U.S. goals.

Operation Iraqi Freedom succeeded in overthrowing Saddam Hussein, but Iraq remains unstable because of Sunni Arab resentment and a related insurgency, now compounded by Sunni-Shiite violence that some believe is a civil war. This report discusses the background of the issue and examines several security challenges, response, and other policy options for the U.S.