Libyan forces have killed at least two protesters in Tripoli as a popular uprising against Libyan leader Muammar Gaddafi closes in on his main power base.
Al Jazeera TV reported that two people were killed and several others were wounded in clashes in several areas. Al Arabiya channel reported that seven people were killed.
Eastern Libya is already under opposition control after a week of unrest, with protesters also holding the center of Zawiyah, west of the capital, and setting up makeshift barricades to keep government forces away, one eyewitness said.
A number of other cities also fell into the hands of the opposition, but Gaddafi maintained the defiance he often showed to the West during his rule.
Just before 19 p.m., Gaddafi appeared to address thousands of supporters gathered in Tripoli's central Hare Square in a speech broadcast on state television.
"We'll fight if they want," he said, gesturing from the high wall.
"We are ready to triumph over the enemy...We will defeat any foreign attempt, just as we defeated Italian colonialism and American attacks."
Raising the prospect of a wider civil conflict in Libya's tribal society, he also said he might arm tribesmen in the future.
"We can trample the enemy. We can trample him with the will of the people. The people are armed and if necessary, we will open the arsenals to arm all the Libyan people and all the Libyan tribes," Gaddafi said.
"Answer the lies of the agencies and satellite channels, show them that the Libyan people are here! If the Libyan people do not love me, then I do not deserve to live. If the Arab people, the African people and all the people do not love Muammar Gaddafi, Muammar Gaddafi does not deserve to live not a single day," said the 68-year-old leader, who was wearing a winter jacket and a hunting cap covering his ears.
Tripoli and the surrounding area, where Gaddafi's forces managed to quell earlier protests, appears to be his last major stronghold.
Even some parts of the capital, as one resident told a Reuters reporter, are under the control of Gaddafi's opponents.
Sending kisses to his cheering supporters, and then dramatically raising both fists in the air, he said:
"Get ready to fight for Libya, for dignity, for oil, for independence and glory."
On Thursday, Gaddafi blamed al-Qaeda leader Osama bin Laden for the rebellion and said protesters were drugged with milk and coffee mixed with hallucinogenic drugs. Some commented that he seemed more conciliatory.
Gaddafi's new argumentative speech
However, today he gave another bellicose speech, urging jubilant supporters to fight and rejoice.
"We have a plan A, B and C. Plan A is to live and die in Libya. Plan B is to live and die in Libya. Plan C is to live and die in Libya."
He said to the outside world:
"Look at Europe, look at America, here is Muammar Gaddafi! Look, you Arabs, look at the Arab people. Here is Muammar Gaddafi among the masses, among the youth. This is the Libyan people, this is the fruit of the revolution. The youth is full of enthusiasm, they want dignity and glory ."
Gaddafi's son Saif al-Islam said in an interview with Turkish CNN that the government controls the west, south and center and that the family has no intention of fleeing.
"We have a plan A, B and C. Plan A is to live and die in Libya. Plan B is to live and die in Libya. Plan C is to live and die in Libya."
State Prosecutor Abdul-Rahman al-Abar is another in a series of high-ranking officials who have joined the opposition. Libyan delegations to the Arab League in Cairo and to the United Nations in Geneva also switched sides.
In the first practical attempt since the beginning of the uprising to win the support of Libya's six million people, state television announced that the government would increase wages and food allowances and order special visits to all families.
Four decades of Gaddafi's totalitarian rule have stifled any organized opposition or rival political structures, but ad hoc committees of lawyers, doctors, tribal elders and soldiers in the east appear to be somewhat successfully filling the vacuum left by Gaddafi's government.
Serbia denies participation in the bombing of demonstrators
Serbia has denied reports that its pilots or ground forces took part in Libyan air force bombings of protesters and said it has suspended arms exports to the country.
The Ministry of Defense announced that "at this moment, it has suspended all joint activities with the Ministry of Defense of Libya due to the given circumstances".
"Serbian Army planes and pilots have never taken part in any combat activities outside the borders of the Republic of Serbia, which is why we deny the misinformation published by some Arab media," the announcement states.
Reuters reported that some Arab and Maltese reports indicated that Serbian mercenary pilots were involved in bombings of protesters in Tripoli and Benghazi.
Libya has several Yugoslav-made Galeb G2 and Jastreb J1 aircraft, as well as some combat vehicles, artillery and light weapons, according to Reuters.
"The usability of those aircraft is disputed and most of them are decades old and probably impossible to repair," said one military official on condition of anonymity.
"The former Yugoslavia used to send members of the army there as instructors, but that was several decades ago".
According to official data, as reported by Reuters, the Serbian state enterprise Jugoimport SDPR has exported weapons to Libya in the last decade.
The Ministry of Defense announced that "at this moment, it has suspended all joint activities with the Ministry of Defense of Libya due to the given circumstances".
"The Serbian budget could suffer some damage due to the potential loss of revenue from the export of military equipment. We will probably cease cooperation as soon as the situation in Libya returns to normal, but only after consultation with Western partners," said a military official.
The USA closed its embassy in Tripoli
The United States of America has announced that it will impose sanctions on Libya and cut off diplomatic relations with the North African country.
European diplomats said that the governments of the EU countries have reached a consensus on the introduction of an arms embargo, asset freeze and travel ban on Libya, but a formal decision will be made early next week.
Carney said Gaddafi's legitimacy had been "reduced to zero" and that he had lost the trust of Libyans. He did not specify when the sanctions will be introduced or what the restrictive measures will be.
"We are taking a number of steps unilaterally and multilaterally to pressure the regime in Libya to stop the killing of its own people," Carney said.
The agencies reported that the US and its allies are working on a joint response to the Libyan crisis and that President Barack Obama had telephone conversations with the leaders of Britain, France, Italy and Turkey.
The Obama administration has faced criticism for its relatively restrained response to Gaddafi's bloody crackdown on protesters, but US officials say their biggest concern is the safety of Americans in the North African country.
The ferry with hundreds of Americans and others finally left Tripoli for Malta today. European diplomats said the governments of EU countries have reached a consensus on the introduction of an arms embargo, asset freeze and travel ban on Libya, but a formal decision will be made early next week, diplomats said.
One diplomat said the aim was to bring the proceedings into line with the United States and the United Nations. The head of European diplomacy, Catherine Ashton, is expected to discuss the coordination of EU, US and UN actions with US Secretary of State Hillary Clinton at a meeting in Geneva on Monday.
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