Last week’s deadly U.S. attack on Iranian military officials significantly worsened geopolitical risks, U.S.-based credit-rating agency Moody’s warned on Monday.

The U.S. killed killed top Iranian commander Qasem Soleimani, senior commander of Iraq’s Hashd al-Shaabi force Abu-Mahdi al-Muhandis, and other Irani and Iraqi officials in an airstrike last Friday.

“The events mark a significant escalation of tensions between the US and Iran and their respective allies,” Moody’s stressed in a press release.

While the agency said it expects the two countries will avoid a military conflict, it also said that a conflict would affect trade and hydrocarbon production in

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