US may use Iraq as model to pressure Iran's trade partners
dawn.com —
The United States may use Iraq as a model for forcing Iran's trading partners out of the dollar-based financial system, with Treasury Secretary Scott Bessent announcing an "economic onslaught" targeting unnamed partners. Washington has already sanctioned Iraqi banks accused of doing business with Tehran, leveraging its control over Iraq's oil revenue dollars through the Federal Reserve Bank of New York. Iraq holds over $100 billion in US reserves, making it highly vulnerable to pressure despite being an ally of both nations. Iran's main trading partners include China, the UAE, Turkey, India, Pakistan, and Oman. Iraq's trade with Iran exceeded $10 billion in 2025, though it has declined in 2026 due to war-related disruptions.