Europe, US press Gaddafi: rebels want no-fly zone

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TRIPOLI, Mar 12 (Reuters): President Barack Obama said Washington and its allies were "tightening the noose" on Muammar Gaddafi, but Libyan rebels said their three-week-old uprising could fail without a no-fly zone. The Arab League will examine a no-fly zone and extending recognition to rebels at Cairo talks Saturday, but experts said splits were likely to prevent agreement, disappointing the EU that is looking to the group to help guide its next steps. "The chances of a clear position to be issued with consensus from the meeting tomorrow saying 'yes' to a no-fly zone and recognition of the (rebel) council is very weak," said Wahid Abdel-Meguid, an analyst at a Cairo-based political think tank. On the eastern battlefield, Gaddafi forces, with air power and a big advantage in tanks, have pressed their advantage in the oil port of Ras Lanuf and the strategic town on Bin Jawad. The revolt in Zawiyah, west of Tripoli and held by rebels for days against fierce attacks, appeared to have been crushed. "Across the board we are slowly tightening the noose on Gaddafi. He is more and more isolated internationally," Obama said. "I have not taken any options off the table." European Union leaders meeting in Brussels said they would consider all options to force the Libyan leader to step down. However, the 27 leaders meeting in Brussels stopped short of endorsing air strikes, a no-fly zone or other military-backed means to achieve that goal. Libyan rebels said their three-week-old insurrection could fail without a no-fly zone. The summit sidestepped a British and French initiative for a U.N. Security Council resolution to authorize a no-fly zone. They also would not back French President Nicolas Sarkozy's call to follow his lead and recognize the National Libyan Council as the country's legitimate authority, or his call for "defensive" air strikes against Gaddafi forces if they used chemical weapons or warplanes against civilians. Libya suspended diplomatic relations with France. Obama, accused by critics of reacting too slowly, told a news conference he believed international sanctions, an arms embargo and other measures already in place were having an impact but also said a no-fly zone remained an option. Soon after he spoke, the U.S. Treasury Department said it had extended a freeze on assets to Gaddafi's wife, four of his sons and four senior officials in his government. On the diplomatic front, the African Union said the leaders of South Africa, Uganda, Mauritania, Congo and Mali will form a panel that will travel to Libya shortly. "The ad hoc committee was set up ... to engage with all parties in Libya, facilitate in an inclusive dialogue among them, and engage AU partners ... for the speedy resolution of the crisis in Libya," the bloc said. Gaddafi's forces appeared to be maintaining the momentum on the ground. The sound of explosions and small arms fire came from the oil port of Ras Lanuf Friday as government troops landed from the sea, backed by tanks and air power. Rebels had advanced to the small town of Bin Jawad about 60 km (38 miles) west of Ras Lanuf a week ago, but have been driven back across the strip of desert and scrub. Though out-gunned, they have kept up stiff resistance. "Ras Lanuf is a ghost town. There are skirmishes between rebels and Gaddafi forces going back and forth," said rebel captain Mustafa al-Agoury, adding that rebels were positioned on the east and Gaddafi's forces on the west of the town.