After a series of counter-attacks by forces loyal to Muammar Gaddafi, the outgunned and loosely organized rebels were today pushed out of eastern oil town of Brega, as the Arab League supported a 'no-fly' zone to halt the advance of the Libyan military to opposition stronghold of Benghazi.
The military, loyal to Muammar Gaddafi, have cleared "armed gangs" from the oil-rich town of Brega in the east, Libyan state TV quoted unnamed army sources as saying today.
"Brega has been cleansed of armed gangs," it said, but the report could not be immediately confirmed.
The claim comes amid a string of setbacks for the rebels who lost several cities in the east to pro-Gaddafi forces. The pro-Gaddafi forces have been swiftly advancing on the rebels who had taken control of much of the eastern parts of the country, Al Zazeera channel said.
It said if the fall of Brega, just 240 kilometres west of Benghazi, is confirmed it would deal a serious blow to the opposition's morale and momentum. "Dozens of rebel fighters are pulling out of the area amid heavy shelling," BBC quoted witnesses as saying. It said Gaddafi's troops are on the outskirts of the Misrata, last major rebel base in western Libya, with tank fire being heard.
Troops loyal to Gaddafi on Saturday had pushed the front line miles deeper into rebel territory to just 40km outside Brega, the site of a major oil terminal, Al Zazeera said.
Amid the setbacks on the ground, the the morale of the rebels have been boosted by the Arab League's support to the UNSC to impose a no-fly zone over Libya..
"The Arab League asks the United Nations to shoulder its responsibility ... to impose a no-fly zone over the movement of Libyan military planes and to create safe zones in the places vulnerable to air strikes," said the 22-member organisation in a statement yesterday.
It also appeared to confer legitimacy on the rebels' interim government, the National Council, saying it would establish contacts with the group.
The Arab League's approval for a 'no-fly' zone is likely to encourage the US and its European allies to move ahead.