The New York Times reports: Three years ago, a black-clad cleric named Abu Bakr al-Baghdadi ascended a mosque pulpit in the Iraqi city of Mosul and addressed the world as leader of a new terrorist state.

The announcement of the so-called caliphate was a high point for the extremist fighters of the Islamic State. Their exhibitionist violence and apocalyptic ideology helped them seize vast stretches of territory in Syria and Iraq, attract legions of foreign fighters and create an administration with bureaucrats, courts and oil wells.

Now, their state is crumbling.

In Syria, American-backed militias have surrounded Raqqa, the group’s capital, and breached its historic walls. Across the border, Iraqi forces have seized the remains of the Mosul mosque where Mr. Baghdadi appeared and besieged the remaining jihadists in a shrinking number of city blocks.

But the loss of its two largest cities will not spell a final defeat for the Islamic State — also known as ISIS, ISIL and Daesh — according to analysts and American and Middle Eastern officials. The group has already shifted back to its roots as an insurgent force, but one that now has an international reach and an ideology that continues to motivate attackers around the world.

“These are obviously major blows to ISIS because its state-building project is over, there is no more caliphate, and that will diminish support and recruits,” said Hassan Hassan, a senior fellow at the Tahrir Institute for Middle East Policy in Washington and a co-author of a book on the group. “But ISIS today is an international organization. Its leadership and its ability to grow back are still there.”

The Islamic State has overshadowed its jihadist precursors like Al Qaeda by not just holding territory, but by running cities and their hinterlands for an extended period, winning the group credibility in the militant world and allowing it to build a complex organization.

So even while its physical hold slips, its surviving cadres — middle managers, weapons technicians, propagandists and other operatives — will invest that experience in the group’s future operations.

And even though its hold on crucial urban centers is being shaken, the Islamic State is in no way homeless yet.

In Iraq, the group still controls Tal Afar, Hawija, other towns and much of Anbar Province. In Syria, most of its top operatives have fled Raqqa in the past six months for other towns still under ISIS control in the Euphrates River valley, according to American and Western military and counterterrorism officials who have received intelligence briefings. [Continue reading…]