Libya celebrated two years since the start of the revolt which toppled Muammar Gaddafi, with security forces on high alert for incidents of violence.
Barack Obama has underscored the bond between the US and Libya, but vowed to hunt down those behind the possibly premeditated killing of the US envoy.
YouTube says it will not remove a film mocking the Prophet Muhammad entirely from the site, but it has blocked access to the clip in Egypt and Libya.
Attacks on US diplomatic missions in Egypt and Libya, sparked by a film that accused of insulting the Prophet Muhammad, have left one person dead.
East of the centre of Tripoli, crowds of Libyans are gathering to see first-hand evidence of the impact of the "colonialist crusader aggression".
An Anglo-American attempt to hand over the Libyan operation to Nato was rejected by several key member countries.
The Libyan rebels watched in awe, some with a creeping admiration for their foe, as the narrow plumes of thick black smoke rose one after the other.
Coalition forces launched a seventh day of air strikes against the regime of Libya's Muammar Gaddafi on Friday.
Support of the United Nations resolution was an attempt to avoid further criticism, diplomats say.
Western warplanes hit Libya for a fifth night on Thursday, but have so far failed to stop Muammar Gaddafi's tanks shelling rebel-held towns.
A defiant Muammar Gaddafi said Libya is "ready for battle" as Western leaders on Wednesday mulled their next steps.
Fighting raged between forces loyal to Libyan leader Muammar Gaddafi and insurgents on Tuesday despite a UN-mandated no-fly zone.
Western forces lost their first warplane as they pounded strongholds of Libyan leader Muammar Gaddafi into a fourth day on Tuesday.
Western powers launched a second wave of air strikes on Libya early on Monday.
Rebel leaders urge a strike against Gaddafi's compound as his forces close in on Benghazi.
Libya on Friday announced an immediate ceasefire in the month-long battle against rebels fighting to overthrow Muammar Gaddafi.
The credibility of the fact-finding mission that the African Union will send to Libya has come under fire in South Africa.
Libya warned on Thursday it could target all Mediterranean air and sea traffic in the case of foreign military intervention.
A trickle of Libyan refugees has become a flood after Muammar Gaddafi's troops entered the rebel bastion of Ajdabiyah, a key city.
The international community must act clearly and decisively to support the uprising in Libya, writes British High Commissioner Nicola Brewer.