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By Ahmed Rasheed and Raheem Salman BAGHDAD (Reuters) - Islamic State fighters seized control of Iraq's biggest dam, an oilfield and three more towns on Sunday after inflicting their first major defeat on Kurdish forces since sweeping through the region in June. Capture of the Mosul Dam after an offensive of barely 24 hours could give the Sunni militants the ability to flood major Iraqi cities, sharply raising the stakes in their bid to topple Prime Minister Nuri al-Maliki's Shi'ite-led government. Islamic State, which sees Iraq's majority Shi'ites as apostates who deserve to be killed, also seized the Ain Zalah oil field, adding to four others already under their control, and three towns. The group, which has declared a caliphate in parts of Iraq and Syria, poses the biggest challenge to the stability of OPEC member Iraq since the fall of Saddam Hussein in 2003.
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