British think tank is pessimistic about Iraq's future.

The breakdown of Iraq would have dire consequences for the region as well, the report said, giving religious extremists greater freedom and threatening stability in neighboring countries. For instance, militant Sunni Muslims operating from Iraq could undermine the regime in Saudi Arabia. Kurds gaining independence in Iraq could invigorate Kurdish movements in neighboring Syria, Iran and Turkey, and possibly prompt a Turkish military response. If Shiites emerge dominant in Iraq, that could create conditions for an attempt to consolidate the Shiite communities in Lebanon, Iraq, Iran, Bahrain and Saudi Arabia.