Libya recently experienced its most significant crisis since the October 2020 cease-fire that ushered in a fragile “cold peace,” ending the war in Tripoli and the oil blockade imposed by Khalifa Hifter, commander of the eastern-based Libyan National Army (LNA).

The turmoil centered on the dispute between Libya’s two rival governments over the leadership of the Central Bank. In August, Abdul Hamid Dbeibah, interim prime minister of the UN-recognized, Tripoli-based Government of National Unity (GNU), ousted the bank's governor, Sadiq a-Kabir, after disagreements over the bank funds — vital for Dbeibah’s mandate, including for governmental projects, but also for pro-Dbeibah militias.

In response, Hifter’s forces, which support the rival Government of National Stability (GNS), based in Sirte, along with the Tobruk-based House of Representatives (HoR), shut down key oil fields in the eastern part of the country, intensifying pressure on the GNU.

The oil blockade sent shockwaves through Libya's oil sector. Around 75% of the country's oil is pumped from eastern areas, which are under Hifter’s control. By early September, oil output had plummeted by roughly 81%, according to Libya's National Oil Corporation (NOC), forcing the cancellation of shipments and impacting Libya’s international oil obligations.