BENGHAZI: Libya was on edge on Friday as forces loyal to Muammar Qaddafi’s crumbling regime staged a bloody fightback in western towns near Tripoli and the east declared itself free of his iron-fisted rule.

Outraged Western governments scrambled to craft a collective response to the crisis in the oil-rich North African state, including possible sanctions against Qaddafi’s remaining loyalists and a freeze on the assets believed to have salted away abroad by the dictator.

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