The evidence is seen in late-afternoon strolls in the park, meetings with long-missed friends, relief over an improved economy.
Recent events suggest both Tehran and Washington may be willing to engage in dialogue.
Top US commander in Iraq said Thursday he is likely to recommend further drawdowns before leaving his post in the fall.
Britain and the Netherlands agree to longer tours, delaying a bigger US role in the mission.
Details from a secret meeting between top Iranian and Iraqi officials signal Iran's aim to 'stop arming' militias.
A cease-fire deal between Mr. Sadr's representatives in the Iraqi government and members of the leading Shiite bloc aims to end weeks of fierce battles in Sadr City.
The US military in Iraq says Iran continues to aid militants, but Iraqis now say that they want their own evidence.
As US troops draw down, Iraqi forces are taking the lead. Reviews so far are mixed.
Pentagon weighs lead role in NATO's combat mission in the south to better fight Taliban.