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Diplomatic failings and ‘elite bargains’ prolonging Libya turmoil: Analysts

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Diplomatic failings and ‘elite bargains’ prolonging Libya turmoil: Analysts

After weeks of tension that saw the Central Bank of Libya (CBL) shuttered, salaries go unpaid and cash vanish, the country’s two rival governments appeared ready to accept a United Nations-brokered agreement to resume operations,  before once more reverting to a deadlock familiar to many in the country.

The internationally recognised Government of National Accord (GNA) in the west had tried to replace CBL Governor Sadiq al-Kabir, accusing him of mishandling oil revenues and going to the extent of sending armed men in to remove him from his office.

Angered, the Government of National Unity (GNU) in eastern Libya, which is supported by renegade commander Khalifa Haftar, shut down much of the country’s oil production, which it controls, in protest.

“This is serious,” said Jalel Harchaoui, an associate fellow with London’s Royal United Services Institute. “The CBL, although weaker now than it was a few years ago, remains a linchpin to the nation’s access to hard currency.”

He added that the CBL funds most of Libya’s imports of food, medicines and other staples, which the country cannot last long without.

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The clash is the latest battleground in the 13-year rivalry between political and military elites that has dogged Libya since the overthrow of long-term ruler Muammar Gaddafi in 2011.

Since then, various analysts say, life in Libya has deteriorated as fighting has continued between rival Libyans and as the international community has tried to preserve the rule of a political and military elite, convinced they are the best for stability and for the proclaimed goal of “unifying Libya”.

Why the central bank?

As well as holding Libya’s vast oil wealth, the CBL unified Libya’s eastern and western “central banks” in one body to manage the salaries of civil servants and soldiers from both governments and build confidence that recovery was possible.

After the GNA-GNU struggle over who would head the CBL, al-Kabir fled the country, claiming that he took the access codes for bank deposits with him, leaving the bank isolated from international financial networks.

Asim al-Hajjaji, director of the CBL compliance department, said international contacts had been restored, although Al Jazeera understands that most international trading remains suspended.

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Soldiers guard the gate of the Central Bank of Libya in Tripoli, on August 27, 2024 [Yousef Murad/AP Photo]

Meanwhile, oil exports have plunged to a new low, salaries are uncertain and everyday life for about six million Libyans is in turmoil.

“The United Nations is talking about talks, which is a sure sign we’re nowhere near resolution,” Tarek Megerisi, a senior fellow at the European Council on Foreign Relations, said of negotiations to restart operations at CBL.

The West, which typically backs the GNA despite it being responsible for much of the uncertainty, “doesn’t know what to do, or really has the bandwidth to do it. They’re dealing with wars in Gaza and Ukraine,” he said.

“It’s just too much. In Libya, international efforts to achieve any kind of just settlement have lost momentum.”

And this is far from the first time.

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Over more than a decade of uncertainty and war, analysts say, the international community’s efforts focused on shoring up the country’s elites in the hope that might lead to stability.

The latest talks over the CBL appear little different, with access to the millions of dollars in assets of primary interest to the country’s elites, and access to the services and certainty craved by much of the population seemingly an afterthought, analysts told Al Jazeera.

Elite bargains presiding over endless turmoil

“Preventing a shooting war has come to be seen as the only international strategy in Libya,” Tim Eaton, a senior fellow at Chatham House who contributed to a paper on the international practice of prioritising powerful elites, told Al Jazeera.

“It’s death by a thousand cuts,” Harchaoui said.

“Everyone’s talking about a return to the status quo as if there were ever a neat, static equilibrium,” he noted. “This was never the case. Even when things appeared quiet, the arrangements were continually decaying and degrading. And that gradual deterioration is what suddenly became visible last month with the CBL crisis.”

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National elections, or even a framework that might lead to them, remain a distant prospect after the last vote, initially scheduled for December 2021, was postponed after infighting.

“Any move towards holding national elections has been blocked,” Eaton said. “Both [Abdul Hamid] Dbeibah [head of the GNA] and Haftar might say they want elections tomorrow, but they only really want their side, or at least their proxies, on the ballot paper.”

Both governments continue to rule separately, while their members, allies and militias profit from smuggling in both people and fuel and unregulated cross-border trade.

Members of Libyan National Army (LNA) commanded by Khalifa Haftar, get ready before heading out of Benghazi to reinforce the troops advancing to Tripoli
Members of the so-called ‘Libyan National Army’, commanded by Khalifa Haftar, get ready to head out of Benghazi to reinforce troops advancing to Tripoli, in Benghazi on April 13, 2019 [Esam Omran Al-Fetori/Reuters]

However, as individual members jockey for position within small and exclusive circles, systems intended to support everyday life in Libya continue to deteriorate and fail.

Eaton notes that the city of Derna, which flooded in September 2023 after a dam that the GNU was responsible for collapsed, remains unreconstructed.

“For healthcare, Libyans have to go overseas,” he noted. “And if anyone is ever caught in an emergency, there’s no one number or department they can call.

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“All the while, the super-rich that are supposed to be looking after people, are getting even richer.”

Both sides, he explained, claim to work towards establishing a central government while state institutions needed to oversee any future state, like a strong central bank, have been hollowed out and captured by elites on either side.

Regionally, over its 13 years of sporadic conflict and political uncertainty, Libya has become a continued source of instability within an already unstable region.

Within a divided Libya, various actors have come to use the country’s east as a staging point from which to project their own international ambitions in Sudan, Syria and beyond.

FILE PHOTO: Governor of Central Bank of Libya, Siddiq al-Kabir gestures during an interview with Reuters in Tripoli, Libya
Ex-Governor of CBL Siddiq al-Kabir in an interview with Reuters in Tripoli on September 1, 2021 [Hazem Ahmed/Reuters]

Overwhelming human cost

In addition to the uncertainty piled on the Libyan population are the more than 1,000 refugees, irregular migrants and asylum seekers who have died or gone missing on the Central Mediterranean migration route, in which Libya is a key part, this year.

“The West and UN in Libya are performing diplomatic theatre while the country crumbles,” Anas El Gomati of the Sadeq Institute said.

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“They have a toolbox of leverage gathering dust. Instead of applying pressure, they’re enabling corruption by legitimising those without electoral mandate or political credibility. That’s not diplomacy; that’s complicity in slow motion.”

El Gomati continued: “East or west, Libya’s compass points to chaos and corruption. Haftar and his kids carve out a fiefdom through war crimes in the east, while Dbeibah runs a ‘pay-as-you-go’ loyalty scheme with armed groups in the west.

“The irony? The elites don’t trust the very banking system they’ve bled dry, so they keep their assets overseas, which the West could freeze, but they’re too busy shaking hands with the very hands pickpocketing Libya’s future.

“Western policymakers and Libyan elites are locked in a race to the bottom of delusion and greed,” El Gomati concluded. “The West sees a finish line; the elites see an endless buffet. It’s not naivete, it’s willful blindness, and the Libyan people are paying for it. In the Libyan elite’s casino, the house always wins, and corruption is the chip that never runs out.”

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Trump says ‘Iran lies and cheats’ as IRGC emerges as dominant force in negotiations with US

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Trump says ‘Iran lies and cheats’ as IRGC emerges as dominant force in negotiations with US

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As President Donald Trump voiced growing frustration Wednesday with Iranian negotiators, accusing them of lying and cheating, the latest escalation has exposed an even more fundamental problem for Washington: whether the officials at the negotiating table have the power to deliver an agreement — or whether anyone in Tehran does.

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“I don’t know if we’re going to have a deal. We may just do it without a deal,” Trump said at the NATO summit in Ankara. “These people, they lie and they cheat.”

But Trump’s frustration with Iran’s negotiators is only part of the problem. Since the death of Ayatollah Ali Khamenei, it has become increasingly unclear who in Tehran has the authority to make — and enforce — an agreement.

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Tehran has deployed a new front on social media including an influence campaign to sway Americans and undermine President Donald Trump’s push for a nuclear deal.  (Hamed Malekpour / Middle East Images / AFP via Getty Images)

Mojtaba Khamenei succeeded his father as supreme leader after the elder Khamenei was killed in the opening U.S.-Israeli attacks on Feb. 28. But Mojtaba has not appeared publicly since the attack, and U.S. assessments cited by Reuters have described authority as dispersed among senior Revolutionary Guard commanders and powerful civilian officials.

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Parliament Speaker Mohammad Bagher Ghalibaf, a former IRGC commander who led Iran’s negotiating delegation, has emerged as one of the country’s most powerful surviving political figures.

Banafsheh Zand, an Iranian-American journalist and editor of the Iran So Far Away Substack, said power inside the Islamic Republic has fractured since the death of Ayatollah Ali Khamenei, leaving the Islamic Revolutionary Guard Corps as the country’s dominant force.

“The person who is negotiating with the U.S. is not necessarily someone who is endorsed by the others,” Zand told Fox News Digital.

She described Ghalibaf as one power center competing with figures including IRGC commander-in-chief Ahmad Vahidi, Quds Force commander Esmail Qaani and former Foreign Minister Mohammad Javad Zarif.

Vahidi controls the IRGC’s overall military structure, while Qaani oversees its external operations and relationships with Iran-aligned armed groups across the region. Zarif, by contrast, remains closely identified with the more accommodationist political camp that previously championed negotiations and sanctions relief.

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“The hardliners, in terms of their political presence, have also been pushed aside,” Zand said. “So really, it’s the IRGC. And within the IRGC, whoever signs the deal is not necessarily signing on behalf of everybody else. They’re signing on behalf of themselves.”

Her assessment reflects a central problem facing Washington: Iran’s negotiators, political institutions and military commanders may not share the same interpretation of what was agreed — or the same willingness to implement it.

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Iran’s Parliament Speaker Mohammad Bagher Qalibaf and Foreign Minister Abbas Araghchi were greeted by Pakistan Foreign Minister Ishaq Dar and Army Chief Field Marshal Gen. Asim Munir upon their arrival at Nur Khan airbase in Rawalpindi, Pakistan, on April 11, 2026. (Pakistan Ministry of Foreign Affairs/AP)

Yet Trump’s declaration does not necessarily mean diplomacy has been permanently abandoned.

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Behnam Ben Taleblu, senior director of the Iran program at the Foundation for Defense of Democracies, told Fox News Digital that the clearest evidence would be the restoration of the U.S. blockade, the introduction of additional military forces or a new round of major economic sanctions.

Otherwise, he said, Trump may continue operating in the “gray zone” between negotiations and open war while keeping his options available.

The more difficult question is why Tehran would jeopardize sanctions relief and risk overwhelming American firepower when its military has already been severely degraded.

Ben Taleblu said Iran’s leaders appear to believe escalation is essential to the survival of the Islamic Republic.

“This is a regime that is weaker, but lethal, and less capable, but more confident,” he said. Iran’s leadership believes its adversaries have vulnerable economic and military interests throughout the Gulf, he added, while the regime itself is more willing to accept destruction.

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People hold placards with an image of Iran’s new supreme leader Mojtaba Khamenei with late Iranian Supreme Leader Ayatollah Ali Khamenei, during a gathering to support Mojtaba Khamenei, amid the U.S.-Israeli conflict with Iran, in Tehran, Iran, March 9, 2026.  (Majid Asgaripour/WANA (West Asia News Agency) Via Reuters)

“Their survival and their military success and their political success runs through more, not less, escalation,” he said.

Lisa Daftari, foreign policy analyst and the editor-in-chief of The Foreign Desk, agrees the escalation is deliberate, aimed at turning regional instability into leverage.

“By targeting commercial shipping and Arab states, the regime is signaling that it can hold global energy flows and America’s regional partners hostage to extract leverage, distract from its domestic crisis, and test U.S. red lines,” Daftari told Fox News Digital.

She said Tehran is betting that Washington and its Arab partners will be unwilling to sustain another war and will ultimately back down first.

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“The regime’s core weapon is time,” Daftari said. “By escalating in the Persian Gulf and attacking ships and Arab states, they are creating rolling crises that raise the cost of confronting them while they consolidate power at home.”

Daftari argued that the strategy reflects the Islamic Republic’s longstanding character rather than a temporary response to pressure.

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Firefighters work in the aftermath of Iranian drone attacks, at a location given as Bahrain (Reuters)

“This regime was never designed to be reformed or softened,” she said. “What they are showing us now is exactly who they intend to remain: a hardline, revolutionary regime determined to stay in power.”

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But determining how that strategy is translated into action is more complicated. Authority in Tehran appears divided, raising questions about who is directing the escalation and whether the officials negotiating with Washington can commit the broader security establishment.

That division is already visible in the dispute over the Strait of Hormuz.

A Middle Eastern source familiar with the issue told Fox News Digital that Tehran and Washington are operating from fundamentally different readings of Clause five of the memorandum. The publicly released text says Iran will use its “best efforts” to arrange safe commercial passage through the strait without charge for 60 days, while removing military and technical obstacles and conducting demining operations. It does not expressly state that foreign vessels must obtain Iran’s approval or use routes designated by Tehran.

According to the source, Iran interprets that language as giving it responsibility — and therefore authority — to coordinate shipping and determine the routes vessels use during the interim period. Washington’s interpretation is that Iran agreed to lift its maritime blockade and fully reopen the international waterway.

When the two sides have different interpretations of a single page, how do they intend to write a treaty, the source said.

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Iran views control over passage through the Strait of Hormuz as one of its last major sources of leverage over the United States, Gulf governments and the global economy, the source said, “That is the heart of the matter.”

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The truck carrying the coffins of the slain Iranian Supreme Leader Ayatollah Ali Khamenei and members of his family makes its way through mourners during the funeral procession toward Azadi Tower in Tehran, Iran, on Monday, July 6, 2026.   (Vahid Salemi/AP)

Taken together, the experts’ assessments suggest Tehran is unlikely to face a simple choice between surrendering to Trump’s pressure and returning to negotiations. Ben Taleblu said the regime believes its survival depends on “more, not less, escalation,” while Daftari said it is deliberately “playing out the clock” by creating repeated regional crises. That raises the prospect that, even if Iranian officials return to the table, the IRGC could continue targeting commercial shipping, U.S. interests and American allies to preserve its leverage and strengthen its position inside Iran.

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