NATO, an organization of Western military powers, entered the fight for Libya on the side of the rebels in July after Gadhafi’s troops began committing atrocities against civilians. Now, it appears most of Gadhafi’s forces have crumbled and allowed rebels to take control of much of the country.

While Gadhafi is currently nowhere to be found, rebels say they have captured two of his sons, one of whom used to be considered the heir to Gadhafi’s dictatorship.

According to the New York Times, the mood in Tripoli was ecstatic as “"residents spilled into the streets -- at first in disbelief, compulsively sharing the news; then in joy, hugging and cheering -- as they received text messages saying that the rebels had entered the city.”

President Obama has encouraged the rebel leaders to move forward cautiously and with respect for the Libyan people as they begin to form a new government.

A season of conflict must lead to one of peace," Obama said in a written statement. "We will continue to insist that the basic rights of the Libyan people are respected. And we will continue to work with our allies and partners in the international community to protect the people of Libya, and to support a peaceful transition to democracy."

The relationship between Western countries and Libya is complicated by the fact that Libya provides about two percent of the world’s oil, much of it to Europe across the Mediterranean Sea. Oil and gasoline prices have fluctuated during the Libyan protests because of fears that the political instability could disrupt the oil supply.  

In 1986, President Ronald Reagan’s administration bombed Libya in retaliation for its role in blowing up a Berlin nightclub and killing two American soldiers. Two years later, Libya was tied to the bombing of Pan Am Flight 103 over Lockerbie, Scotland, which killed 207 people.

After 9/11, however, Libya paid reparations for its role in the Lockerbie bombing and agreed to dismantle its nuclear program. In a show of goodwill in 2008, then-Secretary of State Condoleezza Rice became the first person in her office to visit Libya in more than 50 years.

The world is waiting to see how the situation in Libya progresses as the country must now start from scratch in forming a government. British Prime Minister David Cameron and other Western leaders have urged that Libya’s assets, which were frozen to keep Gadhafi from using them to fund his army, now be unfrozen to help the rebels build up the country.

In the meantime, skirmishes continue between rebels and those loyal to Gadhafi, even as Libyans take to the street to celebrate. No one is sure how the battle for Libya will end, but for now, many Libyans are reveling in their new-found freedom even as their longtime dictator remains in hiding.