This is a bunch of crap. This a fairly common laboratory reagent, hardly a WMD stockpile. I work for a pharma company and we have tons of far nastier substances sitting in our labs. There are prob at least 50kg of Sodium Azide sitting in this building now (just as poisonous as sodium cyanide, and can form explosives when mixed with metals.) I regularly work with hundreds of liters of acetonitrile (aka cyanomethane [methyl cyanide].) A toxic and highly flammable liquid. And this stuff is relatively safe. Reference standard rooms for drug R&D labs can have substances that are lethal in ug amounts(millioniths of a gram, more than 3 magnitudes of order greater than cyanide.) Are we going to start bombing pharma/chemical companies now?
Hell, my Dad was able to walk into a chemical supply store and easily buy 1 kg of Copper Sulfate because he was told by a guy it could help control the algea in his pond. He didn't even have to show ID, or explain what is was for. 1/4 cup later he had completely sterilized (along with the fish, oops) his entire pond, and a bird who had drunk some of the water. This story is tripe for fools, but I'm not surprised coming from FOX "news."
We also don't know who brought it into the country and when, or if it was produced in Iraq. This could be AQ, or it could have been SH as speculated.
Or they could have just ordered it from Sigma-Aldrich, Fisher, Baker, VWR or a whole host of (American) chemical suppliers for perfectly legitimate uses.