Western forces hit targets along the Libyan coast on Saturday, using strikes from air and sea to force Muammar Gaddafi’s troops to cease fire.
The United States accused Muammar Gaddafi of defying international demands for an immediate ceasefire.
Nato and the EU begin two days of talks on Libya on Thursday focusing on a possible "no-fly" zone after a day of fierce fighting.
A Libyan insurgent said rebels had retaken the heart of the closest city to the capital from forces loyal to Muammar Gaddafi on Wednesday.
Libyan troops loyal to Muammar Gaddafi launched counter-offensives against rebel-held towns on Sunday as the popular uprising escalated into warfare.
Intense automatic gunfire erupted in the Libyan capital Tripoli on Sunday, the first such outbreak in Muammar Gaddafi’s main stronghold.
Libyan forces closed in on the western town of Zawiyah on Saturday after rebels drove them from the centre in fierce fighting.
Interpol delivered a global alert against Gaddafi and 15 members of his inner circle to help police around the world enforce United Nations sanctions.
Muammar Gaddafi, orchestrating a populist response to rebels threatening his rule, blamed al-Qaeda on Wednesday for creating turmoil.
US warships will pass through the Suez Canal on Wednesday on their way to Libya as Western nations put more pressure on Moammar Gadaffi.