Libya: Arab Countries Threaten No-Fly Zone

The Arab League has said it could enforce a military no-fly zone over Libya if leader Colonel Muammar Gaddafi allows his own people to suffer further bloodshed.

The organisation, whose members include countries across the Middle East, said it could team up with the African Union and patrol the skies above the country to prevent the Libyan air force carrying out attacks.

Secretary-general Amr Moussa said: "The Arab League will not stand with its hands tied while the blood of the brotherly Libyan people is spilt."

Imposing a no-fly zone is also one of the options being considered by the British Government.

Foreign Secretary William Hague indicated on Tuesday that it could be enforced without UN backing, but would require the support of allies.

Colonel Gaddafi greets chanting supporters in Tripoli

Col Gaddafi warned earlier that thousands of Libyans would die if the country was invaded by Western forces.

"We will never accept it," he said in an address on state television.

"We will enter a bloody war and thousands and thousands of Libyans will die if the United States enters or Nato enters."

He told supporters that there are "no protests at all in the east", blaming any clashes on al Qaeda sleeper cells attacking security forces.

We are ready to hand out weapons to a million, or two million or three million, and another Vietnam will begin. It doesn't matter to us. We no longer care about anything

Colonel Gaddafi

In front of the world's media, he denied there were extensive protests across the country, despite first-hand reports from journalists in the rebel-held area.

His speech came as David Cameron told the House of Commons that Britain had launched an operation to rescue Egyptians stranded at the Libya-Tunisia border.

Col Gaddafi was seen being mobbed by supporters in the capital, chanting: "You will remain great".

During his address, the leader vowed to fight to the last man and woman to defend his country, reiterating a similar sentiment to his son Saif who yesterday told Sky News he would live and die in Libya.

The Brega oil facility had previously been under rebel control

Referring to calls from foreign leaders for him to step down, Col Gaddafi said he had no position to leave as he is a symbol for the Libyan people.

His speech comes as witnesses near the eastern town of Ajdabiyah, less than 500 miles from Tripoli, claim two fighter jets launched air strikes on the area in a "hit and run" attack.

Rebels are also battling Col Gaddafi's forces following a morning raid on the nearby port town of Brega.

Revolutionaries initially said the town and oil export terminal had been taken by the leader's men, but they have since claimed they have regained control.

"They tried to take Brega this morning, but they failed," said Mustafa Gheriani, a spokesman for the rebel February 17th Coalition

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"It is back in the hands of the revolutionaries. He is trying to create all kinds of psychological warfare to keep these cities on edge."

However, Libyan state television contradicted the rebel reports, claiming Col Gaddafi's forces now control the airport and the seaport at Brega.

The majority of the fighting appears to be contained at the university campus outside the oil installations and a fighter plane is apparently circling overhead.

Citizen militiamen from Ajdabiyah are reportedly regrouping to defend the town, but have sent several pick-up trucks with fighters to help the rebels in Brega.