U.S. pressure on Iraq signals broader strategy to curb Iran's trade partners

The United States is pressuring Iraq to curb financial dealings with Iran, sanctioning Iraqi banks involved in trade with Tehran. Washington's measures could jeopardize Iraq's energy payments to Iran, which exceed $10 billion annually. Iraq relies heavily on U.S. goodwill for its oil revenues, with over $100 billion in reserves held in the U.S. Washington has already halted a $500 million cash shipment and threatened sanctions on senior Iraqi politicians. However, analysts say the pressure hasn't broken Iraq's economic ties with Iran. Iraq pays Iran $4-5 billion yearly for natural gas, and its vulnerability stems from dependence on the U.S.-led financial system. Treasury Secretary Scott Bessent announced an economic onslaught against Iran's trading partners, including China, UAE, Turkey, India, Pakistan and Oman.