But IS fighters hit back with a counterattack that included several suicide bombings against the Syrian Democratic Forces, an alliance of Kurdish and Arab fighters trying to seize control of the city.
The SDF captured two villages on the southern bank of the Euphrates River that the jihadists had been passing through to withdraw from the city, the Syrian Observatory for Human Rights said.
"The SDF has been able to completely encircle Raqa," said Rami Abdel Rahman, head of the Britain-based monitoring group, which relies on a network of sources on the ground.
It came too as Iraqi forces announced the recapture of an iconic mosque in IS's last major Iraqi bastion Mosul, prompting Iraqi Prime Minister Haider al-Abadi to declare "the end" of the "fake" jihadist state.
The SDF, backed by the US-led anti-IS coalition, broke into Raqa on June 6 after spending months chipping away at jihadist territory around the city.
Its fighters have since captured two eastern and two western districts of the city and are pushing towards the city centre, where IS fighters are holding tens of thousands of civilians.
The SDF had surrounded the jihadists from the north, east and west but they were still able to escape across the Euphrates, which forms the southern border of the city.
Today's advance saw SDF fighters capture the villages of Kasrat Afnan and Kasab on the southern bank of the Euphrates, cutting off the route the jihadists were using to withdraw to territory IS controls in the Syrian desert and in Deir Ezzor province.
The SDF has "continued to advance eastward south of the Euphrates River, moving to completely encircle ISIS in Raqa," said Colonel Ryan Dillon, spokesman for the US-led coalition.
But the jihadists appear determined to make a bloody last stand.
Several dozen jihadists disguised in SDF uniforms launched an attack from the city centre, which they still control, on two districts in the southeast of the city.
They carried out three suicide car bomb attacks, deployed drones armed with explosives, seized six SDF positions and killed several fighters, Abdel Rahman said.
"Even totally besieged, jihadists are able to carry out operations," he added.
IS overran Raqa in mid-2014 as part of the offensive that saw it seize control of large parts of Syria and Iraq.
The United Nations estimates some 1,00,000 civilians remain in the city, with the jihadists accused of using them as human shields.
Marking the third anniversary of IS's declaration of a state on June 29, 2014, a leading analysis firm said the jihadists had since lost more than 60 percent of their territory and 80 percent of their revenue.
In January 2015, IS controlled about 90,800 square kilometres, but by June 2017 that number dropped to 36,200, said IHS Markit.
"The Islamic State's rise and fall has been characterised by rapid inflation, followed by steady decline," said Columb Strack, senior Middle East analyst at IHS Markit.
"Three years after the 'caliphate' was declared, it is evident that the group's governance project has failed," Strack said.
IHS Markit said IS's average monthly revenue had plummeted by 80 per cent, from USD 81 million in the second quarter of 2015 to just USD 16 million in the second quarter of 2017.
The White House envoy to the coalition, Brett McGurk, visited one of the recaptured areas today, meeting with local officials in the northern Syrian town of Tabqa.
The visit came a day after McGurk met with members of the Raqa Civil Council, the body expected to run the northern city after IS's expected fall there.
Disclaimer: No Business Standard Journalist was involved in creation of this content
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
