ISIS fighters made significant gains on Sunday, seizing control of Iraq's largest electricity generating dam, an oilfield and two towns, report Reuters and Al Jazeera.
This is the first major defeat experienced by Kurdish troops, which including the elite Peshmerga fighters.
"The terrorist gangs of the Islamic State have taken control of Mosul Dam after the withdrawal of Kurdish forces without a fight," said Iraqi state television.
However, a Kurdish official told Reuters that the dam was under the control of Peshmerga troops whilst the surrounding towns were now under ISIS control.
This is the first major defeat experienced by Kurdish troops, which including the elite Peshmerga fighters.
"The terrorist gangs of the Islamic State have taken control of Mosul Dam after the withdrawal of Kurdish forces without a fight," said Iraqi state television.
However, a Kurdish official told Reuters that the dam was under the control of Peshmerga troops whilst the surrounding towns were now under ISIS control.