This report describes recent developments in the assistance effort in post-authoritarian Iraq and key issues of potential interest to Congress.

Iran is materially assisting all major Shiite Muslim political factions in Iraq, most of which have longstanding ideological, political, and religious ties to Tehran, and their armed militias. The Administration notes growing involvement by Tehran in actively directing training, and arming Shiite militiamen linked, to varying degrees, to hardline cleric Moqtada Al Sadr. Some analysis goes so far as to see a virtual "proxy war" between the United States and Iran inside Iraq.