Report
For Libya, the Hormuz crisis can be a trap or an opportunity
Al Jazeera EnglishOpinion
Libya's vast oil and gas reserves have made it a focus of European diversification efforts amid the global energy crisis sparked by the US-Israel war on Iran, but the country remains energy-insecure, with falling gas exports, chronic blackouts and $17bn in subsidies eating up 35 percent of GDP. Greater foreign demand risks reinforcing the hydrocarbon-dependent model that has kept Libya trapped in the resource curse, unless structural reforms address its domestic energy problems.
