Iraq’s prime minister, Haider al-Abadi has warned Western leaders that tumbling oil prices are having a “disastrous” effect the country's fight against the Islamic State.

The warning came during a meeting in London yesterday, a number of Western leaders committed to increase shipments of ammunition to the region - and to consider allowing the Baghdad government to defer millions of dollars of payments for key supplies, to elevate financial pressures on the state.

Iraq's leader stressed that the country is not poor - but that it is currently experiencing fiscal difficulties in light of the recent fall in oil prices - the price of oil has fallen by almost 60 percent since June of 2014.

These talks were hosted by Philip Hammond, Britain’s foreign secretary. The United States' sectary of state, John Kerry also attended.

The country's armed forces have struggled to deal with the fundamental Islamic group who have dismantled large sections of the boarder between Iraq and Syria.

Sat down with PM @HaiderAlAbadi. Continue to be impressed by his leadership & commitment to strengthening #Iraq. pic.twitter.com/F8IFKsGGHF

— John Kerry (@JohnKerry) January 22, 2015

The army has reclaimed 700 square kilometers of land from the Islamic State - but these gains were made with the backing of US-led air strikes. The Iraqi ground army is under trained and poorly equipped. 

John Kerry said that US programmes to train troops to fight Islamic State forces, and to improve military command and control centres in Iraq - will continue, saying: “This effort is not going to be deterred or diminished or defeated.”