Continued clashes between opposing militia have dashed hopes for political stability as IOCs active in the country report dented bottom lines.

Libya has descended further into violent lawlessness, as militia continued to wrestle for control of Tripoli and Benghazi, the country’s two main cities.

The week began ominously, after fuel tank near the fought-over Tripoli airport was hit by a missile strike on 27 July. The plumes of smoke from the ensuring fire darkened the skyline...