U.S. Defense Department watchdog warned that the Islamic State (IS) was "resurging" in Syria and is trying to expand its command and control in neighboring Iraq taking advantage of the United States withdrawing its troops from the war-infested country.

This warning is contained in the second quarterly report by the Inspector General on Operation Inherent Resolve (OIR), the American military operation to combat the Islamic State in Iraq and Syria.

President Donald Trump had claimed last year that the Islamic State caliphate was decimated, and ordered withdrawal of all American troops from Syria. Defense Secretary Jim Mattis' decision to quit was said to be prompted by this move.

The Pentagon has maintained a skeleton size of troops in northeastern Syria, which hardly poses any threat to the terrorists.

Trump said joint effort by the U.S. military, its Coalition partners, and the Syrian Democratic Forces have liberated virtually all of the territory previously held by ISIS in Syria and Iraq.

But at the same time, U.S. military and intelligence reports had warned that IS cadres could stage a comeback unless sustained counter-terrorism pressure is maintained.

The withdrawal of the chunk of U.S. forces, which was leading the international coalition, has reportedly took away the sting of their fight against IS.

The dreaded terrorist group, which suffered major territorial losses, is exploiting weaknesses in local forces, says the report covering the period from April 1 to June 30.

During the quarter, ISIS continued its transition from a territory-holding force to an insurgency in Syria and solidified insurgent capabilities in Iraq.

According to the Combined Joint Task Force-OIR, Islamic State militants carried out assassinations, suicide attacks, abductions, and arson of crops in both Iraq and Syria. In addition, ISIS established "resurgent cells" in Syria and sought to expand its command and control nodes in Iraq.

It was during this period that a partial withdrawal of U.S. forces from Syria took place. It decreased the support available to partner forces at a time when they needed training and equipping to respond to ISIS resurgent cells, the Office of Inspector General said.

In Iraq, the Iraqi Security Forces often lack the ability to maintain forces in territory cleared of ISIS militants, while in Syria, the U.S.-backed Syrian Democratic Forces were "initially limited" in personnel, equipment, and intelligence to confront ISIS's resurgent cells, the report said.

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