Iraq hit back with a late double to rescue a point and leave the Lions disappointed.
Coady said: "I thought in the first half, it was a good team performance.
"We got the ball down and moved quite well so we deserved the lead going into half time.
"In the second half, I thought we were a bit too defensive and on the back foot, but to be fair to them they came out and pressed us.
"We're bitterly disappointed."