LIBYA’S rebels said their military commander was shot dead in an incident that was shrouded in mystery, pointing either to factional infighting within the movement trying to oust Muammar Gaddafi or to an assassination by Gaddafi loyalists.

Delegates from more than 30 countries have decided to recognise the Libyan opposition as the “legitimate authority of Libya”, according to the Italian foreign minister.

Delegates from nearly 40 countries seeking an end to the Libyan conflict met in Istanbul today to discuss more financial aid and diplomatic support to the country’s main opposition group as the rebels struggle to defeat Col Muammar Gaddafi’s forces.

China said Libya’s opposition leader will visit this week, further boosting Beijing’s engagement in Libya’s civil war and dealing another setback to dictator Muammar Gaddafi.

LIBYAN rebels broke out towards Tripoli from the opposition-held port of Misrata, 225km to the east, yesterday.

CASH-STRAPPED Libyan rebels won a financial lifeline potentially worth billions of dollars from the United States and other allies yesterday, as forces loyal to Muammar Gaddafi pounded a rebel town in the west.

The United States is trying to free up some of the more than $30bn (€20.5bn) it has frozen in Libyan assets so it can support the rebels, US Secretary of State Hilary Clinton told a conference today.

The conflict in Libya is heading towards a “stalemate” despite more than a month of allied air strikes against Colonel Muammar Gaddafi’s forces, the most senior American military officer admitted today.

The Obama administration tonight announced plans to give the Libyan opposition millions of dollars of aid.

Libyan rebels, backed forcefully by European leaders, rejected a ceasefire proposal by African mediators because it did not insist that Muammar Gaddafi relinquish power.

EU leaders are today set to demand that Colonel Muammar Gaddafi gives up power in Libya with immediate effect – just as his regime regains ground from rebel forces trying to overthrow him.