The Arab league on the same day Gaddafi loyalists have re-taken control of the oil town of town of Ras Lanuf have back plans for a no-fly zone over Libya. This according to reports from the New York Times
Al-Jazeera has also reported that rebel forces appear to in wide-spread retreat, Gaddafi forces also appear to advance to Benghazi, an opposition stronghold.
The Washington Post has also reported that 2 US warships have crossed the Suez Canal en route the Mediterranean sea, which would place them close to Libyan territory.
Events seem to be moving rapidly in this ongoing crisis, with the possibility of a no-fly zone edging ever closer. If a no-fly zone is adopted by either NATO or the UN then they would effectively be at war with Libya. The reason for this is because one of the first actions of military forces would be to bomb Libyan air defences, thus invading their air space and violating the countries sovereignty.
The Military Balance (Rebel v Gaddafi Forces) BBC Reports