Iraq, as a major country in the Persian Gulf region, has traditionally played an important role with regard to stability and security in the area. However, the Ba’athist Iraq, especially under Saddam Hussein, acted in large measure as a source of instability, tension and conflict in the area. That period came to an end in 2003 with the collapse of the Ba’athist regime and the emergence of a new governance system in that country. Considering Iraq’s position in the region as well as its quite substantial potentials, this country can still play such an important role – perhaps more important than in the past – in the stability and security of the region. Characteristics of the “New Iraq”, particularly its unfolding democratic experience and governance, and a new collaborative approach to foreign policy, especially towards the neighboring countries, have raised hopes for Iraq’s prospective positive contribution to regional stability, security, convergence, and ultimate integration, based on a new pattern of engagement and collaboration among regional states and actors. Having suffered for a long period from destructive rivalry, tension and conflict, the Persian Gulf region is acutely in need of a new collaborative, indigenous mechanism to foster and promote lasting stability and security in the area – needless to say, with the active participation of all countries in the region. The present article attempts to look into the Iraqi aggressive posture and policy during the past several decades as well as into the prospects for the future based on the mutual roles and responsibilities of the “New Iraq” and the neighboring states in the Persian Gulf, from the vantage point of peaceful intentions and conduct, interaction and collaboration towards the development of a collective regional system.