Iraqi town caught in middle of territory dispute Tuz Khurmatu, a town of low-rise buildings, palm trees and some 110,000 residents, is in a swathe of territory Kurdistan wants to incorporate in its autonomous region over Baghdad's strong objections. Diplomats and officials believe this dispute over territory is the greatest threat to Iraq's long-term stability. For the people of Tuz Khurmatu, simmering tensions between Baghdad and Kurdistan cause fear and are also bad for business. Images and soundbites