Iraq on Monday launched the third phase of a military operation in the north to combat ISIS sleeper cells as US-led coalition forces begin to withdraw.

The US State Department is denying any deal-making or “good-will diplomacy” was behind the impending release of Kassim Tajideen, a Lebanese-Belgian businessman and convicted financier of the militant organisation Hezbollah.

Jamal Zeina split from group once known as Nusra Front earlier this year to set up a new hardline organization.