ELMAU, Germany — Despite setbacks that have raised doubts about his policy, President Barack Obama voiced optimism Monday that the Islamic State would be driven out of Iraq, but said the effort will take time and require an inclusive government in Baghdad.

Obama said the U.S. will continue to ramp up training and assistance to Iraqi troops so they can carry out offensive, not just defensive, operations.

“We have seen successes but we have also seen setbacks,” Obama said at the beginning of a meeting with Iraqi Prime Minister Haider al-Abadi. Referring to the Islamic State by one of its acronyms, Obama added: “ISIL is going to be driven out of Iraq and ultimately it is going to be defeated.”

Obama and Abadi spoke on the sidelines of a meeting of leaders of the Group of Seven industrialized economies.

The session with Abadi came just a day after an Iraqi general declared that Iraqi troops, backed by Shiite militias, had recaptured key parts of the northern refinery town of Beiji from the Islamic State. The news was a welcome change of pace for the U.S. after Islamic State militants won a major victory by capturing the city of Ramadi, the capital of Iraq’s Anbar province.

Abadi thanked Obama and G-7 members for standing with Iraq against the Islamic State. He said Iraqi troops were winning a number of battles and downplayed Ramadi’s loss. “We lost it only temporarily,” he said.

Obama also expressed confidence in Abadi’s leadership, saying the prime minister appeared committed to creating an inclusive government that gave voice to the various factions in Iraq.

“There’s a refreshing honesty in the part of the prime minister that a lot of work needs to be done,” Obama said.

Obama on Monday sought not only to address pressing Mideast problems, but also to convince European leaders to maintain sanctions against Russia in the face of fresh violence in Ukraine.

Obama participated in the final day of the G-7 summit under the strain of an intimidating list of global pressures and little signs of movement to address them among the world’s largest industrial democracies. Climate change and terrorism topped the official agenda, but leaders also grappled with Russia’s aggressive moves on Ukraine, an upcoming nuclear deadline with Iran, tenuous trade pact politics and an impasse over Greece’s international bailout.