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The jihadist rebound came as the United States and Russia issued a surprise joint presidential statement saying there was "no military solution" to Syria's grinding six year war. However, the two countries have long backed opposite sides in Syria.
Kremlin today said US President Donald Trump and Russian counterpart Vladimir Putin made progress during a brief meeting on the sidelines of a summit in Vietnam. Trump and Putin also "confirmed their determination to defeat ISIS", an alternative name for IS.
"IS fully recaptured Albu Kamal, and regime forces and allied militia are now between one to two kilometres from the city limits," Rami Abdel Rahman, head of the Britain-based Observatory, said today.
Across the border, Iraqi forces seized today several villages from the jihadists in an offensive to capture the last IS-held section of their country.
The operation's commander, General Abdelamir Yarallah, said his forces captured Rumana and 10 other villages as they worked their way towards the Euphrates Valley town of Rawa, the last Iraqi town still held by IS.
It has since evolved into a complex war that has killed more than 330,000 people, forced millions more to flee, and left much of the country in ruins.
Violence has broadly decreased since a series of "de-escalation zones" have been put in place in recent months in battlefronts across the country.
Multiple rounds of peace talks hosted by the United Nations in Geneva have failed to resolve Syria's entrenched conflict.