US Treasury Tightens the Noose and Baghdad Seeks Safe Exits

With the escalation of US financial sanctions against Iranian entities during the recent conflict, the US Treasury placed the Iraqi banking system under strict surveillance microscopes. Baghdad was informed of the necessity to ban any transactions that could constitute a lifeline for the besieged Iranian economy. This dual pressure has put the Iraqi government in a dilemma, as it seeks to maintain essential commercial exchanges with its eastern neighbor to avoid food and energy shortages, while simultaneously making intensive efforts to comply with strict US Federal Reserve standards to avoid its banks' isolation.