Sticking to the SOFA agreement, American forces are withdrawing from Iraqi cities to rural bases, as Dick Cheney and others raise concerns about a potential rise and violence. The Iraqi's themselves are pretty jubilant, turning the day into a festive national holiday.

Going forward, the most contentious issue facing Iraq isn't Al Qaeda, but the "Kurdish Question". The Kurdish people reside mostly in northern Iraq, on top of huge oil reserves which they feel belongs to them and the nation of Kurdistan. Baghdad obviously disagrees and with the U.S. drawing down its role and buffer between the two regions, Baghdad's surprising toughness towards negotiating with oil companies, the issue will be become a major focus in the future.