Washington’s Libya gamble: unity, oil, and power

The visit of Libya’s Undersecretary of Defence to Washington marks the latest step in a broader US effort to expand its role in Libya, combining security cooperation with renewed attempts to break the country’s long-standing political deadlock.

According to the Libya Observer on 27 June, Undersecretary Abdul Salam Al-Zoubi met senior US defence officials to discuss military cooperation, institutional reform and regional security, underscoring Washington’s commitment to strengthening Libya’s defence institutions while supporting long-term stability. 

The visit comes amid an increasingly active US diplomatic strategy aimed at reunifying Libya’s fragmented political and financial institutions. In April, Libya signed its first unified East-West budget agreement in thirteen years, a breakthrough widely seen as laying the financial foundations for future national reconciliation.

Building on that momentum, Washington has intensified efforts to bridge the divide between Libya’s rival governments. US-backed mediation has focused on integrating state institutions and creating conditions for a unified executive capable of leading the country toward long-delayed elections. However, political divisions remain entrenched. Competing factions continue to disagree over power-sharing arrangements despite growing international pressure.

The United Nations has echoed these concerns. While welcoming renewed diplomatic engagement, the UN has warned that Libya’s political process remains stalled and that institutional integration alone will not resolve underlying rivalries without broader political consensus.

In June, members of Libya’s House of Representatives expressed support for Washington’s latest roadmap, as also the strongman of the East, Khalifa Haftar, expressed support, although significant doubts remain over whether elections can realistically be held under current conditions. At the same time, US-backed initiatives have faced resistance from competing armed groups and political factions in Tripoli, illustrating the fragile balance Washington must navigate.

Security remains a central pillar of American engagement. Joint military exercises planned with Italy in April demonstrate that Washington views defence cooperation as complementary to political reconciliation rather than separate from it. The exercises are intended to strengthen military coordination while supporting the gradual unification of Libya’s fragmented security apparatus.

Beyond politics and security, US engagement also reflects Libya’s growing strategic importance as an energy producer. Washington has increasingly supported institutional stability as foreign investment returns to Libya’s oil sector, where unified governance is widely regarded as essential for safeguarding energy production and attracting international investors. An energy sector where Washington has already firmly established its presence. In fact, Libya has reopened its oil sector to international competition for the first time in nearly two decades. The National Oil Corporation (NOC) announced on February 11 the results of its first public bidding round, offering 20 exploration blocks for oil and gas drilling. The United States, like other Western powers, has moved quickly to seize opportunities, securing multi-billion-dollar contracts through companies such as ConocoPhillips and Chevron.

Taken together, these developments suggest that US policy in Libya is evolving beyond crisis management. By linking security cooperation, institutional reunification, economic stability and more control of the energy resources of the North African country. Washington is attempting to promote the unification of the Libyan state, partly in the interest of the country’s stability and partly to maintain a firm position within Libya’s military and economic dynamics. The reunification of the country remains, however, complicated, with two rival centres of power hostile to one another and strongmen who show no intention of giving up their privileged positions.

Libya Observer, Maghrebi.org