Libya Civil War / NATO Intervention — 2011
Oil supply shock from the Arab Spring's most violent chapter
The Libyan civil war erupted in February 2011. NATO airstrikes began March 19 and continued until Gaddafi was killed on October 20. Libyan oil production collapsed from 1.6 million barrels per day to near zero. Brent spiked above $126/barrel. The S&P 500 fell approximately 7% from its late-April peak through mid-June.
What history says
Editorial commentary written by ALAN analysts. Figures cited below are analyst-authored context — they are not derived from the chart above and may reflect different windows or sources.
The IEA coordinated a 60-million-barrel strategic reserve release — the first since Hurricane Katrina.
Libya mattered to markets because it produced high-quality light sweet crude for European refiners.
The 19% peak-to-trough was caused by the US credit downgrade and Greek/Italian contagion.
Oil is the transmission line to watch when a producer descends into war — Libya's lost barrels, not its politics, moved prices, and strategic reserve releases capped the damage. Consider evaluating energy exposure and fuel-cost-sensitive holdings against a temporary supply outage rather than repositioning the whole portfolio.