They have more than just 77 T-72s that were given to them from Hungary, are you under the impression that we destroyed all the former ones that they had in service. And I have stated this on prior posts but here it goes again, Iraq has more Type 59 and 69s in service or boneyards than they do T-55s.They have a number of T-tanks in service already, so the purchase of the M1 would cause a mix of Eastern and Western equipment in any way. If they could not handle that, than they would not even try to opt for the Abrams.
Their armoured forces so far are 77 refurbished T-72 received from Hungary in 2005 (see here) and according to Wikipedia another armoured battalion of 72 T-55 in service (no source here so could be a false information). I don't think they will retire the T-72 anytime soon.
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