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Hundreds Flee as Fighting Rages Around Libya's Benghazi

Fighting raged around Libya's rebel stronghold of Benghazi Saturday, with air strikes, shelling and anti-aircraft fire rocking the Mediterranean city as a war plane went down in flames.

Hundreds were seen fleeing the city eastwards amid unconfirmed reports that forces loyal to Libyan strongman Moammar Gadhafi had entered the western suburbs of the city of more than one million people.

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Obama Threatens Military Action if Gadhafi Defies U.N. Resolution

U.S. President Barack Obama Friday threatened defiant Libyan leader Moammar Gadhafi with military action unless he met specific, "non-negotiable" demands for a ceasefire, a halt to attacks on civilians and a retreat from rebel strongholds.

Obama said the world could not stand by because, if left unchecked, Gadhafi would commit atrocities in which thousands could die, adding that the Libyan strongman had been given "ample warning" to change his behavior.

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Libya Declares Immediate Ceasefire after U.N. Resolution but Rebels Say Attacks Continue

Libya declared Friday an immediate ceasefire in the month-long battle against rebels fighting to overthrow strongman Moammar Gadhafi, but the insurgents dismissed it as a bluff and Washington demanded action, not words.

More than four hours after the announcement, rebels said they were still being attacked by Gadhafi loyalists, a claim Tripoli denied.

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Seif al-Islam Gadhafi Says Libya 'Not Afraid' After U.N. Action

A son of Libya Moammar Gadhafi on Friday said his family was "not afraid" after the United Nations approved air strikes against forces loyal to his father's regime.

"We are in our country and with our people. And we are not afraid," Seif al-Islam Gadhafi told ABC News Nightline from the Libyan capital Tripoli.

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Nasrallah to Deliver a Speech on Saturday During Rally in Support of Uprisings

Hizbullah leader Sayyed Hassan Nasrallah will make a speech during a ceremony scheduled to be held on Saturday in support for uprisings in Arab countries, the party’s media office announced.

The statement said late Thursday that Nasrallah will address supporters during the ceremony aimed at sending a message of support for the people of Tunisia, Egypt, Bahrain, Libya and Yemen.

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U.S. Worried Gadhafi Could Return to 'Terrorism'

A senior U.S. official warned Thursday there was a "very real danger" that Libyan leader Moammar Gadhafi could return to terrorism if he is allowed to consolidate his control over the fractured nation.

There is "a very real danger that if Gadhafi is successful on the ground, that you also face a number of considerable risks as well, the dangers of him returning to terrorism and violent extremism himself," under secretary of state for political affairs William Burns told U.S. senators.

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Divided NATO Presses Ahead with Libya Military Plans

NATO's chief urged the U.N. on Thursday to quickly act on Libya to stop Moammar Gadhafi from crushing rebels, but the alliance was divided even as it pressed ahead with plans for a no-fly zone.

"If Gadhafi prevails it will send a clear signal that violence pays. That would be unacceptable from a humanitarian and democratic perspective," Secretary General Anders Fogh Rasmussen said.

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Libya Army Reaches Benghazi Outskirts, Says to Halt Operations Sunday to Let Rebels 'Surrender'

The Libyan army announced that it would halt military operations from Sunday to give rebels the chance to lay down their arms and benefit from an amnesty, state news agency Jana reported Thursday.

"The provisional general committee (ministry) of defense has decided to halt military operations against the armed terrorist bands from midnight on Sunday (2200 GMT) ... to give (them) a chance to lay down their arms and benefit from a general amnesty," Jana said.

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Gadhafi's Son to Sarkozy: Give Us Back Our Money

Libyan leader Moammar Gadhafi's son on Wednesday told "this clown" French President Nicolas Sarkozy to "give us back our money" allegedly used to finance his 2007 election victory.

Seif al-Islam told Euronews that "we have all the details and are ready to reveal everything" as Gadhafi's forces closed in on rebels in the eastern city of Benghazi who France recognized as Libya's legitimate representatives.

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Oil Rises Above $98 Amid Bahrain, Libya Clashes

Oil prices rose to above $98 a barrel Wednesday in Asia as fears that clashes in Bahrain and Libya could further disrupt crude supplies outweighed concern Japan's disaster will crimp demand.

Benchmark crude for April delivery was up 97 cents at $98.15 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange.

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