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I agree.The original mistake was probably taking out Saddam, who if nothing else, helped to keep Iranian influence in check, and gave Iran, Israel and Saudi Arabia a common enemy to worry about.
After Saddam was gone, unless America planned to stay in Iraq forever, that country became open for business to the Iranians.
I think you could argue that both the Iranians and saudis likes having Saddam around, as it provided white space or a barrier between the two. Now that that is gone the Iranians do not fancy the idea of Sunnis that can run through Iraq and threaten Iran.