Islamic State Facing Financial Challenges, According to IHS

An independent analysis finds that the Islamic State is facing financial challenges, partly due to airstrikes that have targeted a key revenue source for the group. 'We're already seeing an impact on the Islamic State's revenue before the most recent airstrikes. But since then, really over the last few weeks, I imagine it's had quite a significant impact on their revenue,' said Columb Strack, senior analyst at IHS Conflict Monitor. 'The Russians are saying they've cut the Islamic State's oil production by 50%. The U.S.-led coalition is saying about 45%. So that will have a significant impact on overall revenue,' he added. According to IHS, the Islamic State's monthly revenue totals $80 million. 'It breaks down roughly as 50% from taxation and confiscation, 45% roughly from oil, and the rest is a combination of drug smuggling, bank robberies, kidnap for ransom, that kind of thing,' said Strack. IHS Conflict Monitor put together its financial analysis using social media sources, contacts on the ground, and leaked documents from the Islamic State. Strack spoke with TheStreet's Rhonda Schaffler.