Libya announces it accepts the UN resolution, encourages opening of all dialogue with all sides, according to Libyan Foreign Minister. Also, the country has agreed to an immediate ceasefire. WTI drops sharply by $23 on the news, as futures spikes. From the AP: "Foreign Minister Moussa Koussa says Libya is declaring an immediate cease-fire and stopping all military operations. Friday's decision comes after the U.N. voted to authorized a no-fly zone and "all necessary measures" to protect the Libyan people, including airstrikes. Koussa says the cease-fire "will take the country back to safety" and ensure security for all Libyans. But he also criticized the authorization of international military action, calling it a violation of Libya's sovereignty." In the meantime, the French foreign minister, eager to blow stuff up, says to remain careful on Libya ceasefire announcement. And of course - Libya has just won the first diplomatic battle. It can now continue doing what it was doing in complete secrecy, while any invasion by US and ally forces will be deemed a provocation by the world, or so Libya believes.
Follow the announcement live here.
And an initial response from a trading desk:
MAKE NO MISTAKE. LYBIA HAS REMOVED THE CASUS BELLI. BUT IT WILL NOT REMOVE THE REASON FOR ORDERING AIR RAIDS IN THE FIRST PLACE. TUNISIA WAS NOT A TARGET, NOR WAS EGYPT. TOO LITTLE OIL. QADDAF I IS A CLEVER NEGOTIATOR. USED TO DEAL WITH BERLUSCONI AND CO. B Y NO MEANS AN IDIOT. HE HAS BOUGHT TIME. HE IS UNDER ATTACK. AND NOT FROM WITHIN.
And in the meantime, nobody appears to care:
Nato's Rasmussen says Nato completing planning in order to be able to take appropriate action in Libya, as Reuters reports that a Libyan rebel in Misrata says rebels repelled Govt. attack on city. In other news, ceasefire to start.... any....minute...now...