Libya's rebel National Transitional Council (NTC) is on the brink of bankruptcy, media reports indicate (e.g. . LAT, July 14)—and this despite the fact that it is sitting on a proverbial sea of oil. The NTC has actually been buying fuel in Europe on credit. Last week, an unnamed "European financial company" that had provided $500 million in loans "told the council that it could no longer shoulder the risk and shut down the credit line." About $100 million donated by Qatar has nearly been spent, and $200 million promised by Turkey has yet to arrive. Several tankers loaded with fuel from Europe have left the Benghazi port without unloading after the NTC couldn't pay cash. The sprawling petrochemical complexes at Port Brega and Ras Lanuf, seized from the rebels by Qaddafi forces this spring, have been shut down. Also closed is the natural gas pipeline that normally fuels electricity production in Benghazi and other eastern cities. "That means that rebel leaders in the country that is the world's 17th-largest producer of oil must import all their fuel," the LA TImes states.

Given that when the Libyan rebellion first broke out, Qaddafi actually tried to play to the West by portraying the rebels as al-Qaeda terrorists—and even claimed the West was supporting him against a jihadist insurgency!—it is a sure sign of his desperation that he is now threatening to dispatch suicide bombers to European capitals in retaliation for the NATO bombardment. "Hundreds of Libyans will martyr in Europe," Qaddafi said in a defiant speech before thousands of Libyans in Tripoli's Green Square July 9—the second such comment so far this month. "I told you it is eye for an eye and tooth for a tooth." The latest threats come as Qaddafi-loyalist forces launched a counterattack on rebels attempting to push toward Tripoli from Misrata, 125 miles to the east. (LAT, July 10)

In another contradictory message on the Libya intervention, the House of Representatives July 8 defeated 199-229 a bipartisan measure sponsored by Dennis Kucinich (D-OH) and Justin Amash (R-MI) to defund all US military operations in the North African country, but passed 225-201 a separate measure sponsored by Tom Cole (R-OK) to deny funding for equipment and training to the Libyan rebels. The second measure, which comes as an amendment to an annual Pentagon spending bill, forbids the Defense Department from providing "military equipment, military training or advice, or other support for military activities, to any group or individual, not part of a country's armed forces, for the purpose of assisting that group or individual in carrying out military activities in or against Libya."

Mauritanian security forces repelled a militant attack on an army base located in the southeastern town of Bassiknou near the border with Mali, authorities said July 6. The attack was reportedly carried out by militants of al-Qaeda in the Islamic Maghreb (AQIM). The Mauritanian military claimed the militants were pushed across the border into Mali, and that its troops had killed at least 10 of the attackers and captured several other.

For weeks all eyes have been on the Libyan rebels who have seized the coastal city of Benghazi in the east of the country from which they have repeatedly advanced on Tripoli—and repeatedly been driven back. Now a new advance has been launched on Tripoli from the interior Nafusa Mountains to the southwest, and reached the Gualish plains that flank the capital on the south. The army of Berber rebels has received air-drops of arms from France, and is apparently coordinating its advance with NATO air-strikes. "We waited before launching this assault and finally got the green light from NATO this morning and the offensive began," an unnamed rebel leader from the hilltown of Zintan told AFP. The rebels have gained strength and legitimacy from the recent defection to their ranks of Gen. Mohammed Ali Dhech, a key figure from Qaddafi's army. (Middle East Online, July 7; FT, July 1)

Thousands of protesters again took to the streets of Morocco on July 3 to push for democratic reforms despite voter approval two days earlier of a constitutional reform that curbs the near-absolute powers of King Mohammed VI. More than 5,000 protesters rallied in Morocco's main economic hub Casablanca, chanting "For Dignity and Freedom!" The February 20 Movement, which has organized weeks of demonstrations calling for reforms in the Arab world's oldest reigning monarchy, denounced the reform as inadequate and called its reported 98% approval a sham.

French officials announced June 29 that they have armed rebels in Libya, in an attempt to break the stalemate in a conflict that has stretched longer than many policy-makers anticipated. France dropped guns, rocket-propelled grenades and other munitions in Libya's western Nafusa Mountains (heartland of the Berber insurgency) in early June to help rebel forces who were at the time under threat from Qaddafi's military, a French military spokesman told reporters. (WP, June 29)

International Criminal Court (ICC) chief prosecutor Luis Moreno-Ocampo on June 28 urged personal aides of Libyan leader Moammar Qaddafi to implement the ICC arrest warrants issued the previous day. Moreno-Ocampo called on the aides to arrest Qaddafi, his son Saif al-Islam Qaddafi, the "de facto Prime Minister," and his brother-in-law Abdullah al-Sanussi, the head of intelligence, for alleged crimes against the people of Libya, saying the aides could be "part of the solution."