The US is orchestrating a power-sharing agreement between Libya's two dominant families-replacing current leaders with younger relatives from the Dbeibeh and Haftar clans-to stabilize the oil-rich nation amid regional tensions and surging energy prices.
Libyan businessman Ahmed Gadalla facilitated $300 million in loans for Khalifa Haftar's failed 2019-2020 Tripoli offensive, leaving ordinary Libyans bearing unpaid debts while key figures escaped accountability, according to investigative findings.
Libya's Haftar family clan has exploited a power struggle between Tripoli's competing factions to secure unprecedented infrastructure funding, consolidating control over eastern Libya while western regions stagnate under political deadlock.
Human rights in Libya
Libya is poised for a new interim authority in 2026 through US mediation between rival factions.
Pakistan is expanding its role as a global military supplier through major arms deals, including a reported $1.5 billion agreement with Sudan and a $4 billion deal with Libya, positioning the South Asian nation prominently in Middle Eastern and African defense markets.
Libya's fragile deadlock persists due to rival leaders' refusal to compromise, backed by foreign powers.
Libya's reconstruction efforts are cementing Haftar's ambitions in the east.
The Trump administration pursued Libya's political settlement through economic incentives, securing major oil deals with U.S. companies while UN envoy Tetteh worked parallel diplomatic channels, creating uncertainty about whether American and UN initiatives aligned toward resolving the country's deep divisions.