As the Libyan turmoil progresses, yesterday March 16th the UN has decided to take action and impose a no-fly zone in Libya, due to the recent assault made by Qaddafi’s warplanes on the rebels. This decision is only one of several military actions the UN decided to implement in Libya.
In the mean time, Qaddafi threats that any attack made by foreign army will be met with severe retaliation including attacks to civilian ships and aircrafts in the Middle East.
This step by the UN could go either way, as it might increase or decrease the stability in the region and the reactions in the financial markets including energy markets.
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