DUBAI, Aug. 25, 2026 — Iraq could show how the United States may pressure countries that continue doing business with Iran as Washington prepares tougher economic measures against Tehran and its trading partners.
The U.S. has already sanctioned several Iraqi banks accused of helping Iran, while its control over Iraq’s oil revenues held in U.S. financial institutions gives Washington significant influence over the country’s finances. Despite these measures, Iraq’s trade with Iran remained above $10 billion in 2025, with the two countries maintaining close economic ties.
U.S. President Donald Trump has warned that countries helping Iran’s economy could face serious consequences. China, the United Arab Emirates, Turkey, India, Pakistan and Oman could face increased scrutiny because of their trade with Iran. However, Washington also faces a challenge: pushing too hard could disrupt the global financial system and hurt economies that rely on trade with Iran.
