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>> Iraqi forces recapturing a government building in Fallujah from Islamic State Friday, a military statement saying federal police have raised the Iraqi flag above the building. It's a symbolic victory coming nearly four weeks after the offensive began. But Reuters Baghdad correspondent Stephen Kalin says the strategic situation is still unclear.
>> We have a photographer on the ground nearby. He's not able to access the area where the government building is because the fighting is still pretty intense. There's bombardment from the air, artillery fire, machine guns, and of course Islamic State is responding with snipers and suicide bombs as their strategy.
>> Even so, the ultra-hardline militants still control a significant portion of the city, which is an hour's drive west of Baghdad.>> ISF forces have entered the city. They are in control of a portion of the city. I think it's too early to say all of the city.
>> The conflict forcing thousands of residents to evacuate, many streets and houses remain booby trapped with explosives. But Islamic State's grip on the city may be slipping.>> There were reports from inside Fallujah of Islamic State fighters pulling off of their checkpoints and allowing civilians to exit, and to go to the military side, the government side and flee to these camps.
It's a sign that Islamic State in Fallujah is really crumbling now.>> The operation coming at a civilian cost, the U.N. warning Thursday the number of displaced now close to 70,000. But efforts to retake Fallujah are rumbling on, government forces advancing along Bagdad Street on Friday, the main east-west road throughout the city.
The military statement also confirming that counter-terrorism forces have surrounded Fallujah hospital.