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Credit ratings agency Moody's on Friday revised Iraq's outlook to "negative" from "stable", citing risks to the country's credit profile due to the ongoing Middle East conflict impacting energy flow and security.
"Iraq's heavy reliance on the oil sector implies that disruption to exports through the Strait of Hormuz – which accounts for around 90% of Iraq's crude oil exports – will materially reduce dollar inflows and fiscal revenues," Moody's said.
Output from the OPEC member's main southern oilfields has collapsed by around 80% due to the U.S.-Iran war and the closure of the strait, pushing storage to high and critical levels, Iraqi energy officials said last month.
Iranian Foreign Minister Abbas Araqchi said on Friday the strait was open following a ceasefire accord agreed in Lebanon, while U.S. President Donald Trump said he believed a deal to end the Iran war would come "soon", though the timing remains unclear.
Iraq resumed southern oil exports on Friday after a halt of more than a month, four energy sources told Reuters.
"Even under a scenario in which the ceasefire were to be sustained, we expect it will likely take some time for flows through the strait to return to normal," Moody's added in its report.
The agency maintained the country's ratings at "Caa1". (Reporting by Unnamalai L in Bengaluru; Editing by Vijay Kishore)





















