A new U.S. intelligence report on ISIS, commissioned by the White House, predicts that the self-proclaimed Islamic State will spread worldwide and grow in numbers, unless it suffers a significant loss of territory on the battlefield in Iraq and Syria, U.S. officials told The Daily Beast.

The report stands in stark contrast to earlier White House assurances that ISIS had been “contained” in Iraq and Syria. And it is already spurring changes in how the U.S. grapples with ISIS, these officials said…

After reviewing its grim conclusions, Obama asked Secretary of Defense Ash Carter and Chairman of the Joint Chiefs of Staff Marine Gen. Joseph Dunford to come up with new options to beat the group back.

The counterterrorism campaign is being stepped up—using the same arsenal of drones, special forces raids, and local proxies previously employed in the global war on al Qaeda. A special operations targeting cell, announced by Carter last week, is one of the recommendations. The roughly 200-strong team will conduct raiding operations in Iraq and Syria, coordinating strikes through a 50-man team that will work inside northern Syria with a band of U.S.-supported guerrillas known as the Syrian Arab Coalition.