The Islamic State is losing significant amounts of its oil revenue as it loses control of territory in Iraq and Syria. According to a report by the US-based analysis group IHS, ISIS is compensating for the fiscal downturn – estimated to be 23% — by implementing additional taxes and penalties, one such being a penalty for possessing alcohol. The amount of revenue ISIS is believed to have made by selling deeply discounted oil on the black market ranges from “several hundred thousand dollars to $2 billion,” according to IHS, which pegs the commensurate loss of territory due to international efforts to fight the terrorist group at 22 per cent. The US Department of Defense is working on a strategy called Operation Tidal Wave II which, according to the analysts, focuses “specifically on supply lines tied to the illicit movement of oil said to be financing regional terrorism operations.” As part of a military operation that is under way to recapture Fallujah in Iraq, the US announced on Saturday that the ISIS commander was among 70 of the group’s operatives killed in an airstrike last week. In Syria, ISIS is reported to be successful in defeating rebel forces near the border with Turkey, capturing a key town on the rebel supply route.