If those foreign countries are our enemies, sure. Of course. They should be de facto "punished" by virtue of the fact that they unwisely invested in our enemy, and we should make that clear by defeating said enemy, and ignoring the complaints of France.
This behavior would have the additional virtue of discouraging future Frances from investing in our enemies in the first place.
Why is Iraq our enemy? Somebody ought to be able to give an honest answer to that one.