Tripoli/Brussels: Europe and the United States stepped up diplomatic pressure on Muammar Gaddafi to quit, while on the ground his forces used their superior strength to press their advantage against rebels.
President Barack Obama said on Friday the United States and its allies were tightening the noose around Gaddafi and 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 UN Security Council resolution that would authorise a no-fly zone.
They also would not back French President Nicolas Sarkozy's call to follow his lead and recognise the National Libyan Council as the country's legitimate authority, or his call for defensive air strikes against Gaddafi's 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.
"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," Obama added.
Soon after he spoke, the US 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.
Gaddafi's forces, with air supremacy and a big advantage in tanks, 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 on Friday as government troops landed from the sea, backed by tanks and air power.
Rebels had advanced to the 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.
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