Libyan Prime Minister Ali Zeidan said Monday he had ordered the army to end the blockade imposed by armed protesters on oil terminals in the east of the country.

The country's oil production has fallen sharply after rebels blocked the terminals in the summer last year, bringing the government on the brink of a financial crisis.

But in a news conference posted on his website, Mr. Zeidan said he asked "the minister of defense to order the chief of staff to move toward oil ports."

Mr. Zeidan has frequently warned he would use force to end the blockade by an armed group seeking autonomy for the eastern region of Cyrenaica.

But though the Libyan navy has shot at tankers trying to enter the rebel-held ports, no concrete action has been taken to retake the terminals.

The blockade of the terminals has cut the country's production to nearly a third of its normal level at 600,000 barrels a day--costing $10 billion to the government.

Write to Benoit Faucon at benoit.faucon@wsj.com

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