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A fighter of the Kurdish People's Protection Units (YPG) fires an anti-aircraft weapon from Tel Tawil village in the direction of Daesh fighters positioned in the countryside of the town of Tel Tamr February 25, 2015. Image Credit: Reuters

New York: Donations to Daesh militants have dramatically declined in the wake of brutal executions by the group that have shocked public opinion in the Middle East, the chief of US intelligence said on Monday.

“I think there is change afoot in the Mideast,” said James Clapper, director of national intelligence, referring to perceptions of Daesh in the region.

“It’s not going to occur overnight. But I think these brutalities, publicised brutalities by [Daesh], beheadings, immolation and the like, have really had a galvanising effect even in the Mideast,” Clapper said at an event in New York organised by the Council on Foreign Relations.

As a result, donations to the extremists in Islamic countries were dropping off, according to Clapper.

“There’s been a big decline,” he said.

But he added that private donations accounted for “less than one per cent” of the group’s income, with most of its revenue coming from bank robberies, extortion and oil smuggling in areas under Daesh control.

Gulf states and other regional states have long been accused of allowing donations to flow to Islamist extremists in Syria, but those countries have denied the allegations.

Clapper also said that Daesh was adept at propaganda and that a “counter-narrative” was needed to defeat the militants.

The conflict would be decided ultimately by winning “hearts and minds” and “a counter-narrative starting with education,” he said.

The US spy chief expressed concern about Daesh militants recruiting fighters from among the huge numbers of refugees who have fled the conflict in Syria.

Millions of refugees have put a “huge strain” on neighbouring Lebanon, Jordan and Turkey, and often are living in grim conditions, he said.

The pool of refugees creates an “environment for recruiting” volunteers for the Daesh, he said.

“That’s a great concern that I have.”

His comments came after the United Nations last week warned Syria’s refugee crisis was approaching a “dangerous turning point.”

Close to 12 million people have been displaced by the four-year war in Syria, including 3.8 million who have fled to neighbouring states.