City remain adamant they have done no wrong and have appealed against the findings of an independent commission, which were announced last week.
The Premier League leaders potentially face a severe points deduction that could put their place in the English top flight at risk.
Iraola believes the world's richest league is caught in limbo until there is a definitive outcome.
"I think the worst thing probably is the uncertainty, that no one knows what's going to happen," the Spaniard said ahead of City's first outing since the verdict at Liverpool on Sunday.
"But we have to focus on Liverpool - be the best club we can be, the best team we can be and that's my challenge."
Iraola only joined the Reds in June but is looking forward to a red-hot atmosphere at Anfield.
"The atmosphere is going to be big, especially at Anfield," he said.
"We want to give also our supporters reasons to be with us. When they see the team they want to see on the pitch, we can create an even better atmosphere and we will work for that."
Liverpool are still unbeaten under Iraola, but three draws in their opening five league games means they start the weekend six points off the top.
Manchester City Verdict
The Premier League have confirmed that Manchester City have been found guilty of all charges related to breaching financial rules.
The charges relate to breaches between the 2008/09 and 2017/18 seasons, with the club found guilty of breaching the Premier League's financial rules.
An independent commission found that the club had artificially inflated their revenues and reduced costs by more than £900 million during the time period mentioned.
The ruling also states that Manchester City committed multiple breaches of its duties of co-operation and utmost good faith towards the Premier League, and that they were in 'significant breach' of both the Premier League and UEFA's spending limits.
Latest stories:
Haaland admits Manchester City must 'stick together' during crisis
Pep Guardiola reportedly set for Etihad return amid Man City legal battle
'It is damaging': Lineker insists City should accept punishment for rule breaches
