politics
Libyan Oil Disputes Emerge as Vulnerability for European Energy Supplies Amid Strait of Hormuz Closure
Libya's internal factional conflicts over oil production and exports have created supply risks for Europe, parallel to the closure of the Strait of Hormuz following U.S. and Israeli strikes on Iran. The Libyan National Army controls key oil facilities, enabling it to halt exports during political disputes. A UN report detailed revenue diversions through a private company linked to eastern forces.
Apr 6, 12:50 PM·2m read1 source
Al JazeeraAudio version
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The closure of the Strait of Hormuz has disrupted global oil flows, with Libya's ongoing internal disputes adding further risks to European energy supplies. The strait, 39 kilometers wide at its narrowest point, typically handles 20 million barrels of oil daily, representing 25 percent of the world's maritime oil trade.
In late February, the United States and Israel conducted strikes on Iran, after which Iran closed the strait. Brent crude oil prices rose to nearly $120 per barrel, Gulf producers reduced output, and bypass pipelines can transport only 5 million to 6 million barrels per day.
Libya's position enhances its role in global oil trade, with crude loaded at northeastern coastal terminals reaching Italian refineries in 48 hours without military escorts or war-risk premiums, unlike Gulf routes during conflicts. Libya produces light, sweet crude grades required by European refiners.
In late March, Egypt announced it would secure approximately 1 million barrels per month from Libya to address disruptions from the Hormuz closure.
Libya has lacked a single functioning government since 2014. The Government of National Unity (GNU), based in Tripoli and led by Abdul Hamid Dbeibah, holds international recognition. In the east, Khalifa Haftar's Libyan National Army (LNA) controls territory through military means, including major export terminals on the northeastern coast, the largest field in the southwest, and fields in the southeast.
Although Tripoli signs oil contracts, the LNA determines export flows. During unresolved political disputes, LNA forces have halted oil movements, closing ports or organizing protests at pipeline junctions and field gates through tribal intermediaries.
Exports resume after agreements are reached. In 2022, amid Europe's energy crisis following Russia's invasion of Ukraine, an arrangement was made between Ibrahim Dbeibah, the GNU's national security adviser, and Saddam Haftar, deputy commander of the LNA and son of Khalifa Haftar.
