Gaddafi brands NATO 'murderers'

Libyan leader Muammar Gaddafi has accused Nato states of murder in his latest speech aired on state television.

It comes days after the alliance acknowledged for the first time that one of its missiles may have caused civilian casualties.

"You said, 'We hit our targets with precision' - you murderers!" he said in his tirade against Nato.

"One day we will respond to you likewise and your homes will be legitimate targets," he said, warning of war in Europe, the US and Asia.

The date on the screen showed June 22 but Colonel Gaddafi referred to a June 19 strike on a house in Tripoli after which Nato regretted civilian casualties as "yesterday's crime".

It suggests he was speaking on June 20 and raised questions over his exact location.

The defiant dictator said he had his "back to the wall" but did not fear death, and the battle against the Western "crusaders" would continue "to the beyond."

"We will not be finished," Col Gaddafi said in the homage to his comrade Khuwildi Hemidi, several members of whose family were killed on Monday in Nato raids.

"There's no longer any agreement after you killed our children and our grandchildren... We have our backs to the wall. You (the West) can move back," he added.

"We are not frightened. We are not trying to live or escape."

Nato has acknowledged its planes early on June 20 hit Sorman west of Tripoli but insisted the target was military, a precision air strike against a "high-level" command and control node.

Libyan government spokesman Mussa Ibrahim said 15 people, including three children, were killed in the attack, which he slammed as a "cowardly terrorist act which cannot be justified."

Meanwhile, further tension continues within various Nato countries over the military action.

The UK Government was due to reveal the Libya campaign has so far cost British taxpayers GBP250m .

When military strikes against troops loyal to Colonel Gaddafi began in March, Chancellor George Osborne told MPs the bill would be in the tens of millions of pounds.

Italy has called for an immediate end to hostilities, while continuing struggles in the US cause difficulty for the Obama administration.

US Secretary of State Hillary Clinton has questioned the priorities of politicians criticising the intervention in Libya.

She said: "Whose side are you on?"

Her comments come after widespread dissatisfaction with Mr Obama's decision not to seek congressional consent for the three-month-old war.