The decision ensures that Iran is not "allowed any form of financial relief", says a spokesperson for the US embassy in Baghdad.
Since Donald Trump came to power in Washington, he has launched a campaign to put "maximum pressure" on Tehran. According to the embassy's spokesperson, the goal is to stop Iran's "support to terrorist groups" and curb the country's nuclear threat and development of ballistic missiles.
Iran has accounted for a third of crisis-stricken Iraq's consumption of gas and electricity.
