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WRAPUP 10-Gun battles rage in Libya, U.S. examines options

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Eni Societa per Azioni
ENI.MI
€17.30
+0.22+1.29%
8:30am PST

Thu Feb 24, 2011 2:31pm EST

* Gaddafi loyalists launch fierce counter-attack

* White House does not rule out military action

* Major oil terminals in rebel hands

* French official says 2,000 may have died

* Switzerland freezes Gaddafi family assets

(Updates with White House, death toll, Gaddafi assets)

By Alexander Dziadosz and Tom Pfeiffer

BENGHAZI, Libya, Feb 24 (Reuters) - Forces loyal to Muammar Gaddafi launched a fierce counter-attack on Thursday on rebels holding towns near the capital and the United States did not rule out military action in response to the Libyan crackdown.

The opposition were already in control of major centres in the east, including the regional capital Benghazi, and reports that the towns of Misrata and Zuara in the west had also fallen brought the tide of rebellion closer to Gaddafi's power base.

Gun battles in Zawiyah, an oil terminal 50 km (30 miles) from the capital, left 23 people dead, a Libyan newspaper said. Al Jazeera quoted residents putting the toll at 100 there.

France's top human rights official said up to 2,000 people might have died so far in the uprising since Feb. 15.

As concerns of further unrest across the Arab world drove oil prices higher, jeopardising world economic growth, foreign governments were struggling to find a common response.

The White House said it was examining all options, including imposing a no-fly zone over Libya, in its response to the Libyan government's attempts to crush of the revolt.

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For more stories on Middle East unrest, click [nLDE71M1AF]

For news on drop in oil output, click on [ID:nRMENDE7GE]

 
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