A fresh air strike has been launched on the opposition-held Libyan town of Brega a day after clashes between anti-government rebels and pro-regime fighters killed at least 12 people.

Bombs were also dropped on a rebel position in the nearby town of Ajdabiyah, where people armed with rocket launchers, anti-tank aircraft guns and tanks had earlier shored up defences.

The latest attacks come amid reports that Moamar Gaddafi and the president of the Arab League are considering a plan that would allow an international peacekeeping mission to mediate the crisis. The plan, put forward by Venezuelan president Hugo Chavez, would involve a commission from Latin America, Europe and the Middle East trying to reach a negotiated outcome between Mr Gaddafi and rebel forces.

Arab League secretary-general Amre Moussa denied reports that he and Mr Gaddafi had agreed to the proposal. Mr. Moussa said, they have been informed of president Chavez’s plan, but it is still under consideration. Mr Chavez says the international community should seek a non-military solution to the conflict and accuses the United States of exaggerating Libya’s problems to justify an invasion.

The Libyan leader’s army is facing an increasingly organised and confident rebel force, which is appealing for international support and looking to take its military successes west towards the capital Tripoli. The rebels repulsed a land and air offensive by Mr Gaddafi’s forces on the eastern oil terminal of Brega, as the defiant leader warned foreign powers of another Vietnam if they intervened in the popular uprising against his 41-year rule.

Speaking live on state television, Mr Gaddafi warned the battle will be very, very long if there is any intervention by foreign powers. The Arab League said it was against direct outside military intervention, but could enforce a no-fly zone in cooperation with the African Union.

Meanwhile, the Netherlands today said, three of its Navy personnel were captured by armed men loyal to Libyan leader Moammar Gadhafi during an evacuation operation on Sunday. A Defence Ministry spokesman said, the crew members were trying to evacuate a Dutch citizen from the Sirte area when they were taken prisoner. He said, intensive diplomatic negotiations are going on between Dutch and Libyan authorities for their release.

The uprising, the bloodiest yet against long-serving rulers in the Middle East and North Africa, is causing a humanitarian crisis, especially on the Tunisian border where tens of thousands of foreign workers are trying to flee to safety. International efforts are being stepped up to rescue the stranded migrants, with France, Spain and Britain all sending planes to help fly thousands of workers back home.