Islamic State again poked its head through the news as they captured another city in Iraq, a centre of Christians – that naturally fled.
Strategically it is more important that they captured the Mosul dam – largest in Iraq.
If they breach the dam they can literally flood Baghdad (already under pressure from a number of bombs attack). That would bring definitely a revival in oil price.
Interestingly their latest newsletter (yes they are good also at web marketing and cyber warfare) is called The Flood.
Islamic State is very different from Al Qaeda. It is more “building of a state” than a terrorist organization. While Al Qaeda was focused on the US as the great evil, Islamic State focus on cleansing other Muslims first (EG if they intervened in the Israel – Hamas conflict, they would have “cleansed” Hamas before attacking Israel.
They are ruthless, but very clever – they taking over oil fields, water sources and banks – they have much more money than Al Qaeda. And they have been backed from extremists in Saudi Arabia, Qatar and Turkey mainly.
They must act fast as their risk that their enemies (Iran, Iran, Kurd, Syria, US) get together and crush them.
Until now they kind of being underestimated as a local threat. It will soon change.
investorpolitico 