LIBYA’S new leadership reaffirmed their commitment to democracy and good governance yesterday as they worked on how to spend billions of dollars they have been given from the frozen assets of fugitive strongman Muammar Gaddafi.

Libyans celebrated their new-found freedom with prayers and joyous chants in Tripoli’s main square today marking the start of a major Muslim holiday.

A massive manhunt was under way for Muammar Gaddafi today as Libya braced itself for life after the hated dictator.

Muammar Gaddafi has apparently vanished after Libyan rebels claimed to be in control of most of Tripoli following their lightning advance on the capital.

Stock markets in Europe and the US have rebounded, led by shares in energy firms, on hopes that fighting in Libya may soon end.

Tanks opened fire at rebels trying to storm Muammar Gaddafi’s main compound in Tripoli today, although he appeared to have vanished a day after the lightning advance by his opponents into the city.

David Cameron will chair a meeting of Britain's National Security Council on Libya (NSC-L) today after cutting short his holiday, Downing Street said.

Clashes broke out near Muammar Gaddafi’s compound in Tripoli early today, a day after rebels poured into the Libyan capital in a stunning advance which met little resistance from the regime’s defenders.

Colonel Muammar Gaddafi’s 40-year regime appeared to be crumbling today as euphoric Libyan rebels swept into Tripoli amid calls for the leader to “go now”.

Euphoric Libyan rebels have moved close to the centre of the capital Tripoli with little resistance as forces loyal to Muammar Gaddafi appeared to have melted away.

Explosions and heavy gunfire were reported in the Libyan capital Tripoli as rebel forces claimed they had launched an offensive against Muammar Gaddafi's forces in coordination with Nato.

A defiant Muammar Gaddafi today threatened to carry out attacks in Europe against “homes, offices, families” unless Nato halts its campaign of airstrikes against his regime in Libya.

Provoked by renewed daylight Nato bombing of his capital, Libyan leader Muammar Gaddafi raged against the alliance, screaming his message and daring Western forces to keep it up

Libyan dictator Muammar Gaddafi unleashed an overwhelming array of firepower on rebels today as he warned them to "surrender or run away".

MILITIAS loyal to Muammar Gaddafi shot and killed protesters as they streamed from mosques and marched across the Libyan capital yesterday to demand an end to the regime.

Libyan leader Muammar Gaddafi has urged a crowd of his supporters to fight back against protesters and “defend the nation”.

Militias loyal to Muammar Gaddafi have opened fire on protesters streaming out of mosques and marching across the Libyan capital.

Pro-Gaddafi forces have fired in the air to disperse marches by regime opponents defying a fierce clampdown in the Libyan capital Tripoli.

Libyans are bracing for mass protests as the rebel movement called for a new push to oust Muammar Gaddafi after a day of fierce fighting.

A defiant Muammar Gaddafi has vowed to fight to his "last drop of blood" and roared at supporters to strike back against Libyan protesters to defend his embattled regime.

A ranting Muammar Gaddafi went on Libyan TV today vowing to fight on and die a “martyr” in the face of violent protests that are tearing the country apart.

The streets of Libya’s capital are littered with the bodies of scores of protesters shot dead by security forces loyal to Muammar Gaddafi, an opposition leader said today.

Deep rifts have opened in Muammar Gaddafi’s regime, with Libyan government officials at home and abroad resigning, air force pilots defecting and a bloody crackdown on protest in the capital of Tripoli, where cars and buildings were burned.

DEEP cracks opened up in Muammar Gaddafi’s regime after more than 40 years in power, with diplomats abroad and the justice minister at home resigning, air force pilots defecting and a fire raging at the main government hall after clashes in the capital Tripoli.

Libyan protesters claimed to have taken control of Benghazi, the country’s second city, today only hours after the son of ruler Muammar Gaddafi warned he would fight them “to the last bullet”.

Libyan protesters and security forces battled for control of Tripoli’s city centre overnight, with snipers opening fire and Muammar Gaddafi supporters shooting from speeding vehicles, witnesses have said.

The son of Libyan leader Muammar Gaddafi went on state television to proclaim that his father remained in charge with the army’s backing and would “fight until the last man, the last woman, the last bullet”.