government forces reinforced a key oil port Thursday while facing new regime airstrikes in eastern Libya, and thousands of angry mourners buried victims of a counteroffensive by Muammar Gaddafi's forces, shooting guns in the air, shouting “Down with Gaddafi!” and swearing to take vengeance. Although there have been stirrings of a diplomatic effort to ease the crisis, an opposition spokesman flatly ruled out any negotiations with Gaddafi, saying “his hands are tainted with blood.” US President Barack Obama insisted that Gaddafi leave office, declaring he had “lost the legitimacy to lead.” He pledged to hold Gaddafi and his loyalists accountable, saying the US and the entire world were outraged by violence against the rebels, and he lauded UN sanctions meant to put international pressure on the longtime ruler. Signaling he was digging in, Gaddafi's regime apparently has stepped up its recruitment of mercenaries from other African countries, with an official in neighboring Mali saying that 200-300 men have left for Libya in the last week. Venezuelan President Hugo Chavez has proposed creating an international peace mission with forces from friendly nations to try to mediate the unrest gripping Libya and avoid civil war. The Arab League said it is “studying” the Venezuelan mediation proposal. Venezuela's information minister says Gaddafi is supporting the proposed plan. Information Minister Andres Izarra says on Twitter that Venezuela's foreign minister spoke with his Libyan counterpart. Izarra says the Libyan foreign minister confirmed Gaddafi's support for the peace initiative proposed by Chavez. But Saif Al-Islam, the son of Gaddafi, however, said Thursday there was no need for any foreign role in ending Libya's crisis when asked about a mediation offer by Venezuela. Saif said in an interview with Sky News that he had not heard about the offer by Venezuelan President Hugo Chavez, but added: “We have to say thank you ... but we are able and capable enough to solve our issues by our own people ... ourselves. There is no need for any foreign intervention.” “...They are our friends, we respect them, we like them, but they are far away. They have no idea about Libya. Libya is in the Middle East and North Africa. Venezuela is in Central America. We appreciate this.” Saif said he had not spoken to his father on Thursday, but on Wednesday had discussed “many things” including the crisis. The US brushed aside Venezuela's proposal, saying Gaddafi does not need to be told “what he needs to do.” State Department spokesman Philip Crowley instead repeated US calls for Gaddafi to step down from power. Meanwhile, the International Criminal Court (ICC) in the Netherlands said it will investigate Gaddafi, his sons and his inner circle for possible crimes against humanity in the violent crackdown of the 17-day-old uprising that sought to topple the man who has ruled Libya for four decades. Luis Moreno-Ocampo, the court's top prosecutor, said Gaddafi and several commanders and regime officials had formal or de facto control over forces that attacked protesters, and he promised “no impunity in Libya.” Army units that have joined the rebels fanned out in the oil facilities and port at Brega, armed with machine guns and rocket-propelled grenade launchers and dressed in camouflage army uniforms with checkered keffiyehs. They were backed by at least a dozen pickup trucks with mounted machine guns or towing rocket launchers. Government warplanes launched a new airstrike on the town Thursday morning, according to witnesses. It was not clear what they targeted, but it was likely an airstrip of the huge oil complex on the Mediterranean coast. No casualties were reported, and pro-Gaddafi forces withdrew 130 km to the west to another oil port, Ras Lanouf, after their defeat Wednesday by citizen militias from nearby towns and cities. Despite having little central organization or command, the anti-Gaddafi fighters were able to repel a force of several hundred regime troops that attacked after dawn. “We are in a position to control the area and we are deploying our forces,” a rebel officer in Brega said. At least 14 rebel fighters were killed in Wednesday's battle, including Abdul-Salaam Senoussi, whose father, Mohammed, came to Brega to claim his body. “You know, this is my son,” the grieving father said softly after identifying the body. He made a gesture like a pistol and said: “They shot him by plane.” Gadhafi has come under international criticism for firing at his people from warplanes, although his regime denies it. Also among the dead was 7-year-old Hassan Umran, who was killed when he was caught in the crossfire. His body was at the same Brega morgue as Senoussi's son. In the opposition stronghold of Benghazi, thousands of mourners chanted “Down with Gaddafi” and fired weapons into the air as they buried three of the dead. The fighting at Brega halted for now the regime's first counteroffensive on the opposition-held eastern half of the country. It also underlined the deadlock that Libya appears to have fallen into. Farj Lashrash, a soldier with the opposition, said the rebels had captured 10 pro-Gaddafi soldiers since Wednesday night. The western gate of the nearby rebel-held town of Ajdabiya, which buried five dead, was reinforced with heavy weaponry - including a tank, four anti-aircraft guns mounted on pickup trucks and four rocket launchers. Gaddafi's forces seem unable to bring significant strength to dislodge rebels from the territory they hold. But the opposition does not have the capability to go on the offense against Gaddafi's strongholds in the west, including the capital, Tripoli. Its leaders have pleaded for foreign powers to launch airstrikes to help them oust Gadhafi as the United States moves military forces closer to Libyan shores. The Pentagon Wednesday tried to play down the idea of using military force in Libya, including a “no-fly zone” that Defense Secretary Robert Gates said would first require attacking Libya's air defenses. The turmoil in Libya has set off a massive exodus of 180,000 people - mostly foreign workers in Libya - who have fled to the borders, UN refugee agency spokeswoman Melissa Fleming said. At least 5,500 foreign workers were being evacuated from the port of Benghazi. Europe, the United States and the United Nations donated more than $30 million to help the chaotic exodus from the North African nation. Forces loyal to Gaddafi captured three Dutch marines and their helicopter during a botched evacuation mission Sunday near Sirte, a stronghold of the Libyan leader, the Netherlands' Defense Ministry said. – Agencies Caption: Public wrath Gunmen from the forces against Libyan leader Muammar Gaddafi fire in the air during a mass funeral for rebel gunmen killed in fighting Wednesday, in Ajdabiya, eastern Libya, Thursday. (AP) __