In an interview published Thursday in Gulf News, the new U.S. commander of Iraq, Gen. Raymond Odierno, said threats remain to political progress and national security, though the country is moving forward.

"Iraq has moved on from being a failed state in 2006 to a fragile state today," he said.

He cautioned that the security situation in Iraq could be upset by the continued activity of al-Qaida in Iraq and the so-called Special Groups from Iran, both of which are capable of launching widespread attacks in the country.

Recent mapping of Baghdad suggests a widespread demographic tilt toward Shiites as Sunnis have largely fled the area, though Odierno said many displaced Iraqis are slowly returning to their homes in the capital.

Additional destabilizing factors include the failure of the Iraqi government to move forward on several power-sharing deals, budget measures and the national hydrocarbon law. The elections scheduled for January, however, give the Iraqi people the opportunity to take part in the direction of their country, he said.

The continued training of Iraqi forces by U.S. military advisers in the course of the evolving strategic arrangement between both countries will also contribute to reconstruction, the general said.