This does sound big, though I suppose it could just be more saber rattling. Have you come across reports of terrorist incidents in Turkey? I'm suspicious that Turkey just wants to grab some of Iraq's oil wealth in the Kurdish region.
There has been activity, but it doesn't seem more serious than any other low-key insurgency - not a serious threat, at least at this stage. I wouldn't be surprised if oil is at least an equally strong motivation for Turkey.
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But yeah, I'm sure occupying an oil rich area like that wouldn't upset them much.
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