Iraq may show how U.S. can squeeze Iran's trade partners

The U.S. can use its control of the dollar-based financial system as leverage — Iraq is a prime example because Washington effectively controls its oil dollars and holds over $100 billion of its reserves.
Iraq is stuck between two allies: it still trades heavily with Iran (about $10 billion in 2025) and even pays $4–5 billion a year for Iranian gas, while relying on U.S. goodwill to keep its finances flowing.
Washington has threatened an "economic onslaught" and may target Iran’s trading partners, but officials worry harsh measures could blow up the global financial system, so incentives might be favored over blunt punishment.