The United Nations acted swiftly to salvage the situation in Libya which could otherwise trigger economic crisis for the West. The effect of this resolution was visible when oil prices fell Friday after Libya agreed to an immediate cease-fire and stop to military operations. But did the prices plunge as a result of this decision alone? Analysts say that Libya’s decision to cease-fire was not voluntary; it was taken after the UN passed a resolution late Thursday night. According to Forbes, the heated political environment in the Middle East is still adding to uncertainty among investors in the longevity of energy prices, which have produced a 30% increase in gasoline prices for U.S. consumers from the same time last year. WTI crude oil fell 0.7% to $100.70 per barrel Friday morning.

According to a report in the Financial Times, the ceasefire with rebels was announced amid concerns in Tripoli that Thursday’s United Nations resolution calling for an end to the fighting could create a de facto partition of east and west Libya.

“Libya will accept that it is obliged to accept the UN Security Council resolution and has decided an immediate ceasefire and the stoppage of all military operations” Mr Koussa, Libyan Foreign Minister told a press conference in Tripoli on Friday.

International media, however, could not confirm if the cease-fire had actually taken place. The town of Misrata, to the east of Tripoli, was reported on Friday morning to be under attack by government forces, according to residents. Mr Koussa declined to answer reporters’ questions about what was happening in Misrata after he read a brief prepared statement. The ceasefire was greeted with jubilation in Benghazi, where crowds gathered in the streets to cheer the news.

Related story:

Financial TimesLibya declares ceasefire after UN acts

 

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