Lili continued generally southward, reaching its peak intensity of 80 mph (130 km/h). Higher pressures developed to its northeast, resulting in the hurricane to accelerate to the southwest. On December 22, Lili finished executing its large cyclonic loop by passing over the same location it passed one week prior. The combination of its increased forward speed, as well as increased levels of vertical wind shear, created an unfavorable environment which caused steady weakening. On December 23, Lili weakened to a tropical storm while located 430 miles (690 km) northeast of Antigua. It rapidly lost organization as it approached the Leeward Islands, and dissipated just off the coast of the Dominican Republic on December 24.