Islamic State: Obama Says Group Is Weakening

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President Barack Obama says the US-led coalition fighting the Islamic State in Syria and Iraq have made gains against the group but he warned that ISIS still poses a threat.

Mr Obama was giving an update to reporters after a pentagon meeting.

He says as the jihadist group loses ground in the Middle East, there are signs that it is shifting to attacks abroad.

“I am pleased with the progress that we’ve made on the ground in Iraq and Syria,” Obama told Reuters.

“We’re far from freeing Mosul and Raqqa.

“While the campaign against Islamic State in Iraq, Syria and now Libya is making significant gains, the group is adapting, reverting to high-profile attacks and using the internet to recruit and train, and to encourage “lone wolf” attacks.

“They’ve seen the degree of attention they can get with smaller-scale attacks using small arms or assault rifles,” Obama said. “The possibility of either a lone actor or a small cell carrying out an attack that kills people is real.”

Separately, he strongly denied that a $400 million cash payment to Iran was a ransom for the release of American prisoners in January.