The security environment in Iraq continues to improve, supported by limited but important gains on the political, economic and diplomatic fronts. Violence levels have declined since the last report and Iraqi Security Forces (ISF) are gradually assuming responsibility for maintain- ing law and order and promoting stability. New strides have been taken in reconciliation at the national, provincial and local levels, and the Iraqi economy is growing. However, recent security gains remain fragile, and sustained progress over the long term will depend on Iraq’s ability to address a complex set of issues associated with key political and economic objectives.