LIBYAN rebels have regained ground in a new advance but accused NATO of inaction hindering their quest to oust Muammar Gaddafi.

Leaders of a militia loyal to an anti-American Shiite Muslim cleric said today that they would not launch attacks on US-led coalition forces in the city of Karbala until the end of a religious festival this weekend.

SHI'ITE Muslim militants were in full control of two key Iraqi cities yesterday as violence escalated and Sunni fighters killed a US marine in the battle for Fallujah.