Harco,
Technically speaking, the entire circuit should be using the 14 AWG conductor. Because of the design of the receptacle they are fine for the next gauge up, 12 AWG.
As previously mentioned, 12 AWG will support a 20 amp current, however, if you choose to upgrade to 20 amp, you must change the entire length of the circuit. You cannot leave any 14 AWG. It would be a violation of NEC code and a fire hazard.
Because of the previously referenced amperage drain of the iron, I would suggest that the entire circuit be up graded.
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