Analysis-Iraq may show how U.S. can squeeze Iran's trade partners

By Michael Georgy

DUBAI, Aug 25 (Reuters) - Iraq could serve as an example of how the United States could carry out its threat to force countries that continue trading with Iran out of the dollar-based financial system.

Washington has already sanctioned a host of Iraqi banks accused of doing business with Tehran, though it has avoided measures that would devastate the economy of the strategic ally of both countries.