Allied forces in World War I provide for an independent Kurdish state under the Treaty of Sevres, which oversaw the partition of the former Ottoman Empire, but the provision is overturned and Kurdish lands split up between Iraq, Turkey and Iran.

In April, a British mandate creates the state of Iraq, as approved by the League of Nations. The British foreign office, which heads British foreign affairs, begins a process of decentralizing the Iraqi government.

In August, Faisal bin Hussein, a prince from Mecca, is named king by the British government, marking the establishment of a Hashemite monarchy in Iraq, even though the country would remain largely under British control. The British government organizes a plebiscite vote and 96 percent vote for Faisal to be their king. King Faisal brings former Ottoman officials into the government and forms an Iraqi army, both largely under Sunni control.

The first treaty is signed between Britain and Iraq to begin the transfer of autocratic control to the Iraqi people.

Organic Law is put into place, making Iraq a hereditary constitutional monarchy.

Private European investors create the Iraq Petroleum Company under a 75-year agreement that excludes the Iraqi government from any ownership in the corporation, although it does receive royalties. The League of Nations backs British and Iraqi claims and grant control of the northern region of Mosul to Iraq, over Turkish opposition. The decision draws the modern boundary of Iraq.

Oil is discovered in Kirkuk, and a pipeline to the Mediterranean Sea begins operation.