Minutes after the United Nations announced it would vote on imposing the No Fly Zone (resolution text link) over Libya, which is probably merely a formality at this point with virtually no hold outs on the Security Council, Libya has immediately retaliated by saying that it such a decision would open counterstrikes by Libya against any "air and maritime traffic in the Mediterranean Sea" as well as "civilian and military facilities in the country." Whether this means that Gaddafi will promptly attack his oil infrastructure as Zero Hedge first suggested 3 weeks ago is unclear, but the Crude market is not taking any chances: Brent is now up almost $4 on the day having snapped its several day losing streak.
Any foreign attack on Libya will endanger air and maritime traffic in the Mediterranean basin and expose the area to both short and long term risks, the Defence Ministry said in a statement broadcast on Libyan television.
The statement said Libya would strike back at civilian and foreign targets if the country comes under attack from foreign forces.
"Any foreign military act against Libya will expose all air and maritime traffic in the Mediterranean Sea to danger and civilian and military (facilities) will become targets of Libya's counter-attack," said the statement.
"The Mediterranean basin will face danger not just in the short-term, but also in the long-term," it said.
The ensuing disruptions to naval traffic should Libya follow through with its threat could mean the short Japan relief-based covering spree in the market today will promptly come to an end.