Emboldened in Syria and Iraq, Islamic State may be reaching limits of expansion
 

** change to text.) * Capture of Ramadi and Palmyra gives Islamic State momentum * Room for further gains limited, especially in Iraq * Islamic State needs to consolidate territory By Peter Graff LONDON, May 27 (Reuters) - With its two biggest victories in nearly a year in Iraq and Syria, Islamic State has energised its fighters, littered the streets of two cities with the bodies of its enemies and forced Washington to re-examine its strategy. The near simultaneous capture this month of Ramadi west of Baghdad and Palmyra **rtheast of Damascus has reinforced the sway of the self-proclaimed caliphate of all Muslims closer to the ramparts of Islam's two great historic capitals. In both Iraq and Syria they have lost ground in recent months as well as gained it.

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