A new report from the research firm IHS says Islamic State lost an area the size of Ireland - a quarter of its territory - to hostile forces in the last 18 months in Iraq and Syria and is likely to further step up attacks on civilians in coming months.  

But the news is also grim.

The report says militants will likely further step up attacks on civilians in the coming months.

'As the caliphate shrinks', it says, IS is 're-prioritizing RE-PRI-O-RI-TI-ZING its insurgency' -- meaning nations can expect an increase in "mass casualty attacks and sabotage of economic infrastructure".

Like the one in Baghdad that killed some 300 people last week.

The warning is not just across Iraq and Syria, but further afield, including Europe.

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