Correcting the terminology...

In addition to escalation, not 'surge' - by the way, what an odd choice of words, seeing as how it was a Storm Surge that flooded New Orleans...

Anyway,
It's an occupation, not a war

When Iraqis are killing Iraqis, its civil war.  Some actions of the civil war, such as civilians shooting at government troops could be termed a rebellion or even a revolution, but overall its civil war.

When Iraqis are killing Americans, its an insurgency.  Also known as a Resistance.  

When the occasional foreigner kills indiscrimintely, it could be termed terrorism.