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After a prolonged battle that lasted nearly two weeks, the Iraqi Prime Minister Haider al-Abadi has declared victory over ISIS in Tal Afar and the entire province of Nineveh.

"Tal Afar has been liberated," Abadi said in a statement on Wednesday.

"We say to the Islamic State fighters: wherever you are, we are coming for you and you have no choice but to surrender or die."

Al Jazeera's reporter, Osama Bin Javaid, reporting from the northern Iraqi city of Erbil, explains the impact of this loss to the terrorist group and the impact it'll have on their finances.

"The loss of Nineveh province is crucial because this is where ISIL declared its caliphate," Bin Javaid said.

"This province was also the engine of the ISIL economy. It is where they used to smuggle oil to other areas. It is also where they used to generate big revenues in terms of taxes," Bin Javaid said.

The offensive on Tal Afar began on August 20.