The United States may utilize its influence over Iraq to demonstrate how it intends to enforce sanctions against countries continuing trade with Iran. Washington has already sanctioned Iraqi banks allegedly conducting business with Tehran, while carefully avoiding measures that would cripple Iraq’s economy – a strategic ally to both nations. US officials, including Treasury Secretary Scott Bessent, have announced impending economic pressure on Iran and its trading partners, including China, the UAE, Turkey, India, Pakistan, and Oman. The US maintains significant control over Iraq’s oil revenue through the Federal Reserve Bank of New York, granting it substantial leverage. Recent actions include halting a $500 million cash shipment and suspending security cooperation to pressure Baghdad regarding Iran-backed militias. This approach with Iraq could set a precedent for dealing with other nations supporting Iran's economy, leveraging the US dollar’s dominance in global trade.