Well, the Iraqi resistance forces/ba'athist regime remnants/evil terrorists (pick your poison WRT what to call them) have a pretty good propaganda division.
And part of the message, encouraging nations and people sympathetic to their cause to put their money into the euro instead of the dollar, could be more effective than another 9/11 at hitting the US where its/our power lies. And, given the inherent weakness in the dollar right now (shrinking US manufacturing base, huge defecits and debt, etc.) this straw might go a long way towards breaking Uncle Sam's greenback.
It doesn't matter too much if the markets agree with the message or the reasoning. If the markets fear a crash in the dollar, they'll pull out and percipitate exactly what it is they fear.
And this message, this video, is in English, the language of the global market.
p.s. one of the rumored "real" reasons that the US went into Iraq (I heard/read about this in the weeks leading up to the invasion) was to keep Iraq/OPEC from switching their Oil trading to a Euro-valuated system from the current Dollar-based market. By invading and occupying Iraq we got a seat at the table or at least a sympathetic regime sitting at the OPEC table. The fewer commodities globally that are pegged to the Dollar, the greater the inherant weakness in the Dollar, since the rest of the world loses incentives to prop up the Dollar. Merry Christmas.