Iraq is exiting 2016 buoyed by high oil prices, but faces a tumultuous 2017. The current administration is unlikely to be toppled, but as for the viability of the state? That’s a different question.

Iraq ends 2016 with its leaders publicly praising the country’s security improvements, yet internally it is deeply divided. In 2017, higher average oil prices ought to offer federal Iraq some relief, but it must manage military operations in the north and west, while the run-up to...