The rebel-stronghold of Benghazi came under attack on Saturday from ground and air, with explosions rocking the city despite a ceasefire announced by Muammar Gaddafi forces, prompting a warning by the United States that the Libyan leader was violating the truce. Two unidentified jets carried out bombing raids on Libya’s second largest city and a bastion of opposition after reports of night long trading of gunfire, raising anew possibility of military action by the US and its allies. A BBC reporter in the city said that one of the attacking aircraft had been downed by ground fire and was flying in spite of a UN no-fly resolution.

While the rebels claimed that Gaddafi’s forces were not holding to their unilateral ceasefire and continuing their advance on the town, the Libyan government said that its forces had stopped their offensive, short of the city. The BBC quoted Libyan deputy foreign minister Khalid Kaaim as claiming that the government forces were sticking to the ceasefire. “The armed forces are now located outside the city of Benghazi and we have no intention of entering,” Kaaim told mediapersons.

Contrary to the claims by the rebels, Gaddafi’s forces were reported to be just 50 kilometers from Benghazi towards the south of the city, said Al Jazeera. At the United Nations, Susan Rice, the US envoy to the world body, accused Gaddafi’s forces of violating the truce announced by them. ”Gaddafi is violating the ceasefire imposed by the UN Security Council resolution,” she said, adding “We don’t believe the military action has stopped.”The reports of fresh fighting in strife-torn Libya came as the US President Barack Obama delivered a blunt ultimatum to the Libyan leader threatening military action if he ignores non-negotiable UN demands for a ceasefire and a retreat from rebel bastions.

Leaders from Britain, the US, France and Arab nations are due to meet in Paris later in the day to discuss military action under the new UN resolution. A NATO’s top decision making body is also meeting in emergency session in Brussels to review the military action plans for a no-fly zone over Libya.The meeting comes amid reports that North Atlantic Treaty Organisation council is expected to issue the order to launch the operation over the weekend. BBC, quoting NATO officials, said that under the plan, dozens of fighter bombers, tankers, helicopters and surveillance planes would be deployed at bases along Europe’s southern rim.