Drone strike in western Libya torches a power substation, triggering outages

CAIRO (AP) — A drone strike ignited a fire at a electrical substation in western Libya on Wednesday, knocking the facility out of service in the latest of a wave of attacks on energy and oil infrastructure that threaten to plunge the country into further chaos.

The state-run General Electricity Company said in a statement that a power substation in the city of Zawiya that links power plants to homes and businesses was completely burned down.

The city of about 250,000 people has been rattled by a series of drone strikes that hit oil and power facilities. Zawiya is home to critical energy infrastructure, including Libya’s largest oil refinery, an export terminal and a power plant.

No group has so far claimed responsibility for the drone strikes.

The power company said the attack resulted in outages across southern parts of the city, which is located about 47 kilometers (about 30 miles) west of the capital Tripoli. Footage shared by the company showed massive flames and fireballs erupting from the facility.

Abdul-Hamid Dbeibah, the prime minister of one of Libya’s two rival governments, denounced the attacks on energy and power installations as “a serious crime and an escalation that will not go unanswered.”

“We will reach those responsible for this attack, and the accountability will be firm. No one will be protected by their position, status, or influence,” he said in a statement.

On Monday, a drone strike hit a fuel-laden tank at Zawiya's refinery, igniting a massive blaze which firefighters battled for over 15 hours. The refinery was repeatedly attacked over the weekend and on Tuesday, according to the state-run National Oil Corporation.

The power plant was hit by two drones on Tuesday, with one damaging its firefighting system while the second landed close to the facility’s main fuel storage, setting it on fire, the electricity company said.

The attacks come as tensions are rising between the government of western Libya and warlord Mohamed Bahroun, who controls the city of Zawiya. Much of western Libya is ruled by local militias loosely allied to Dbeibah’s government in Tripoli.

The country has been divided for years between rival administrations, each backed by armed groups and foreign governments. Dbeibah governs western Libya and the administration of Prime Minister Ossama Hammad governs the eastern part of the country.

After Tuesday’s attack on the power plant, the U.S. company General Electric withdrew its teams from the facility “until security conditions and a suitable and safe work environment are ensured,” the electricity company said. GE performs maintenance and upgrading services for the plant.

GE previously withdrew its staff from the plant over security concerns, prolonging the loss of more than 700 megawatts of the station’s production capacity, estimated at 1300 megawatts, the electricity company said.

The violence came as Turkish Foreign Minister Hakan Fidan was in Tripoli to meet with Dbeibah and Mohammad Younes Menfi, chairman of the Presidential Council.

Turkey is the main foreign backer of Dbeibah's government, but in recent years has also reached out to the rival authorities in eastern Libya in an attempt to mend ties, and as part of regional efforts to unify the North African country.

Libya, an oil-rich country on the Mediterranean, has been wracked by conflict since a NATO-backed uprising-turned-civil war toppled and killed longtime dictator Moammar Gadhafi in 2011.

This frame grab from video shows firefighters working to contain a fire at the Zawiya oil refinery following a drone strike in Zawiya, Libya, Tuesday, Aug. 11, 2026. (Libyan Fire Department via AP)

Firefighters work to contain a fire at the Zawiya oil refinery following a drone strike in Zawiya, Libya, Tuesday, Aug. 11, 2026. (AP Photo/Yousef Murad)

Flames and thick black smoke rise from a fuel storage tank at the Zawiya oil refinery following a drone strike in Zawiya, Libya, Tuesday, Aug. 11, 2026. (AP Photo/Yousef Murad)

Firefighters work to contain a fire at the Zawiya oil refinery following a drone strike in Zawiya, Libya, Tuesday, Aug. 11, 2026. (AP Photo/Yousef Murad)

Firefighters work to contain a fire at the Zawiya oil refinery following a drone strike in Zawiya, Libya, Tuesday, Aug. 11, 2026. (AP Photo/Yousef Murad)

NEW YORK (AP) — Wall Street is flirting with a record Wednesday after several AI stocks reported better growth for the spring than analysts expected, while a report showed inflation across the United States was slightly less bad last month.

The S&P 500 added 0.3% and was on track for its first gain since setting its all-time high on Friday. The Dow Jones Industrial Average was up 57 points, or 0.1%, as of 10:30 a.m. Eastern time, and the Nasdaq composite was 0.7% higher.

Stocks in the artificial-intelligence technology business helped lead the way after strong profit reports bolstered hopes they can continue to deliver big-enough growth to justify the huge gains their prices have made.

Super Micro Computer, which sells servers and other equipment, jumped 14.2% after reporting earnings per share for the latest quarter that were 84% higher than analysts expected. It also gave forecasts for upcoming profit and revenue that topped analysts’ expectations.

CoreWeave, which offers AI computing power to customers over the cloud, leaped 18.6% after reporting better revenue for the latest quarter than analysts expected, along with a milder loss. CEO Michael Intrator said demand is accelerating from customers as big businesses adopt AI.

CoreWeave gives its customers access to AI chips from Nvidia, and Nvidia climbed 3.1% to act as the single strongest forces lifting the S&P 500.

It’s a return to strength for AI stocks, which have been veering on a roller-coaster ride for months. After surging to records, AI stocks came under pressure on worries that they shot too high. Investors wanted to see big spenders on AI prove that their investments are yielding better profits to make them worth it. That in turn could lead to continued demand for chips and other building blocks of AI data centers.

Wall Street also got some broad support from easing yields in the bond market. Treasury yields fell after a report showed that U.S. consumers paid prices for gasoline, groceries and other costs of living last month that were 3.4% higher than a year earlier.

That’s higher than anyone would like, but it’s not as bad as the 3.5% inflation rate of June.

The deceleration could give the Federal Reserve more leeway to hold off on hikes to interest rates. Higher rates would help keep a lid on inflation, but it would do so by making it more expensive for U.S. households and companies to borrow and forcing a slowdown in the economy. Higher interest rates also would undercut prices for stocks and other investments.

The Fed’s members have been notably split about whether they should have already begun hiking interest rates. But Wednesday’s update on inflation pushed traders to pull back on bets the Fed will hike its main interest rate at its next meeting in September.

Traders are betting on just a 38% chance of it, down from the coin flip’s chance seen the day before, according to data from CME Group.

That helped pull the yield on the 10-year Treasury down to 4.65% from 4.70% late Tuesday. It, though, still remains well above its 3.97% level from before the war with Iran, which sent oil prices and worries about inflation spiking.

Oil prices edged lower on Wednesday, and the price for a barrel of Brent crude slipped 0.4% to $88.55.

Higher yields have already pulled long-term mortgage rates to their highest level in a year. That is hurting the housing industry, and losses for homebuilders on Wednesday helped keep the market in check. D.R. Horton fell 3.2%, and Lennar lost 2.4%. Builders FirstSource, which sells countertops and other building materials, dropped 4.8%.

In stock markets abroad, indexes were mixed across Europe and Asia.

South Korea’s Kospi jumped 3.7% for one of the world’s bigger gains. It’s been at the center of the jarring swings for AI stocks because it’s dominated by two tech giants, Samsung Electronics and SK Hynix.

AP Business Writers Michelle Chapman and Elaine Kurtenbach contributed to this report.

Trader Fred Demarco, right, and Specialist Michael Pistillo, left, work on the floor of the New York Stock Exchange, Friday, Aug. 7, 2026, in New York. (AP Photo/Yuki Iwamura)

A general view shows the New York Stock Exchange, Friday, Aug. 7, 2026, in New York. (AP Photo/Yuki Iwamura)

Currency traders work at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, Aug. 12, 2026. (AP Photo/Ahn Young-joon)

Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, Aug. 12, 2026. (AP Photo/Ahn Young-joon)

Currency traders work at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, Aug. 12, 2026. (AP Photo/Ahn Young-joon)