Indigenous IS fighters in northern Diyala province are using insurgent tactics to threaten areas that have ostensibly been reclaimed by government-backed forces.
Prices of basic fuels have risen by up to 80 percent and quality has plummeted after a June 6 airstrike crippled IS’s import network of road tankers. US officials say the "best" third of the IS oil sector has now been destroyed.
A coordinated and well-planned IS offensive that killed the Tuz Khurmatu police chief shook the relatively secure frontline town, setting off alleged extrajudicial killings of prisoners nearby and a violent end to a tentative ceasefire between Kurdish and Turkomen forces.
Despite losing territory and facing crippling air strikes, militants still control some wellheads in Salahaddin province and are sneaking crude to Mosul, and on to Syria.