The United States lifts economic sanctions imposed on Libya 18 years previously, as a reward for its cooperation in eliminating weapons of mass destruction.

Economic sanctions or embargoes are commercial and financial penalties applied by states or institutions against states, groups, or individuals. Economic sanctions are a form of coercion that attempts to get an actor to change its behavior through disruption in economic exchange. Sanctions can be intended to compel or deter.

Muammar Gaddafi became the de facto leader of Libya on 1 September 1969 after leading a group of Libyan Army officers against King Idris I in a bloodless coup d'état. When Idris was in Turkey for medical treatment, the Revolutionary Command Council (RCC) headed by Gaddafi abolished the monarchy and the constitution and established the Libyan Arab Republic, with the motto "Unity, Freedom, Socialism". The name of Libya was changed several times during Gaddafi's tenure as leader. From 1969 to 1977, the name was the Libyan Arab Republic. In 1977, the name was changed to Socialist People's Libyan Arab Jamahiriya. Jamahiriya was a term coined by Gaddafi, usually translated as "state of the masses". The country was renamed again in 1986 as the Great Socialist People's Libyan Arab Jamahiriya, after the United States bombing that year.

A weapon of mass destruction (WMD) is a biological, chemical, radiological, nuclear, or any other weapon that can kill or significantly harm many people or cause great damage to artificial structures, natural structures, or the biosphere. The scope and usage of the term has evolved and been disputed, often signifying more politically than technically. Originally coined in reference to aerial bombing with chemical explosives during World War II, it has later come to refer to large-scale weaponry of warfare-related technologies, such as biological, chemical, radiological, or nuclear warfare.