Yeah, neither did the Iraqis. This was the proposed redesigned Iraq flag, as proposed by the Coalition Provisional Authority (the provisional government during the first stage of the American occupation). The two blue stripes were meant to represent the two rivers of Mesopotamia, the Tigris and the Euphrates. The yellow stripe in the center was to represent the Kurds.
Iraqis took one look at it and thought the design and motif were way too similar to the Israeli flag and wanted nothing to do with it. Another Neocon instance of no foresight, listening or attention to details on the ground.