Less than a month after sanctioning four Iran-backed militias in Iraq, Washington imposed a new wave of sanctions that targeted Iraqi officials and state institutions accused of laundering money for Tehran’s government.

Israeli Prime Minister Benjamin Netanyahu’s threats to target leaders of Iraqi factions have raised questions over whether his remarks signal a real danger or are merely for political show—and how Baghdad will respond.

As UN sanctions on Tehran take effect following the expiration of the so-called snapback mechanism, Iraqi political figures are warning of serious repercussions for their country, especially after Iranian President Masoud Pezeshkian hinted at Tehran’s plans to navigate the crisis.

Baghdad’s ability to resist Iranian pressure is under scrutiny after reports that a senior Iraqi official rejected a request to channel money to Hezbollah via Syria, leaving open the question of whether the cash could yet reach Lebanon.

Iranian diplomat Saeed Khatibzadeh has been making headlines for months, not only because he once served as the Foreign Ministry’s spokesman and later as an ambassador, but also because he is regarded as the youngest figure in Tehran’s diplomatic circle.