Obama Considers Intervention In Libya As Attacks Continue (OIL)

The United States is considering military intervention of a no fly zone, as refugee camps have been formed in Tunisia after tens of thousands of people have fled the violence in Libya.

Libya braced for "Friday of Freedom" protests both in Tripoli, the capitol of Libya, and elsewhere across the country. Officials attempted to hold journalists in their hotels so as to not report on the protests.

As Muammar Qaddafi's forces launched airstrikes against rebels in the eastern half of the country, U.S. President Barack Obama stated that the United States is ready to protect civilians caught in the conflict.

Speaking at the White House, the President noted that the U.S. and the North Atlantic Treaty Organization (NATO) are considering a "full range" of military options, and that the U.S. has "full capacity to act" if "defenseless citizens were finding themselves trapped and in great danger."

As U.S. Secretary of Defense Robert Gates warned Congress about implementing a no-fly zone in Libya, which would require bombing Libya's air defenses, the Arab League expressed support for the idea, noting that it would work with African Union forces in carrying out the no fly zone.

Senator and former presidential candidate John McCain has called for a no-fly zone. He also wants to provide humanitarian aid. “It seems to me that we should prevent and take steps to prevent” Qaddafi from being able to continue to kill people from the air, McCain said.

As the fighting continues, tens of thousands of refugees have fled to Tunisia, which has set up a refugee camp in an airport at Djerba – an island that is near the Libya-Tunisia border.

Meanwhile, Qaddafi has sent troops to recapture towns in Western Libya. Clashes in opposition-controlled Misrata left at least 33 people dead and 120 injured. Fighting also broke out in Ras Lanuf, a port town that has Libya's biggest oil refinery, which is capable of producing 220,000 barrels per day.

Qaddafi has also mobilized the military to attack protestors in Tripoli, which Bloomberg reports is already under his control.

In related trading news, the crude oil exchange-traded fund OIL for April delivery rose over 2 percent from yesterday to $27.80 in New York on news of the continued unrest.