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By Hadley Gamble and Mac William Bishop

Sliding oil prices may be hitting ISIS' pockets but they're also hurting a country fighting to defeat the militants: Iraq.

The price of oil has fallen to its lowest level since May 2003. That — coupled with coalition airstrikes on ISIS cash piles — has reportedly put the fighters' finances under pressure.

Iraq's Prime Minister Haider al-Abadi told CNBC that it appears ISIS is "running out of steam" and that his forces have put ISIS on the "run."

"They have slashed the salaries they’re paying to their terrorists, which means we are winning," he said.

Still, he said Iraq is fighting three wars at the moment: Against ISIS, corruption and economic struggles

The drop in oil has made the third battle increasingly difficult, he added, calling the current price of oil unsustainable.

"It has been very tough," he told CNBC. "There is quite a challenge ahead because I have to use many of my resources to fight Daesh."