A coaliton of Libyan rebels has urged the US and its allies to bomb mercenary forces supporting Muammer Gaddafi and to impose a no-fly zone as the opposition repelled a fierce assault by pro-regime troops.

The attack on Brega, which hosts Libya’s second largest hydrocarbons complex, was the first significant assault by pro-Gaddafi forces on an eastern town held by the opposition since a popular uprising seized control of the region more than a week ago. An oil official in the east said there was no damage to the oil facilities in the fighting. But oil prices surged to near $118 a barrel, nearing a two-and-a-half-year high, on concerns over the assault.

“The people, the youth, the revolution have recaptured Brega after a few hours,” said Hafiz Ghoga, a spokesman for the opposition’s national council.