Oil prices declined by mid-morning in New York after Libya announced it would halt further military actions against anti-Gaddafi protesters. The move came after the UN passed a resolution giving the Security Council authorization to impose a Ã¢â‚¬Å“no-fly zoneÃ¢â‚¬Â giving the UN authority to take military action to protect citizens.
Brent crude prices rose to a high of $117.29 shortly after the UN announcement as traders feared this could lead to wider conflict and could jeopardize the flow of oil in the region. However, after Libya said it would order its military to stand down and the threat of increased fighting eased, crude prices began to tumble.
Despite LibyaÃ¢â‚¬â„¢s announcement, the situation is far from resolved and tensions in the country remain high. Concern also remains elevated in Bahrain where thousands of demonstrators fought with government forces in the heart of the financial district.
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