Islamist-allied militias from the western city of Misrata have fought with an eastern militia that holds a major Libyan oil terminal in violence that killed at least two people.

The officials say the Tripoli-based government - backed by Misrata militias and Islamist factions - ordered its forces to "liberate" the Sidra oil terminal.

That terminal is held by the militia of eastern separatist Ibrahim Jedran.

Mr Jedran's forces are known to be loyal to Libya's elected government based in the eastern city of Tobruk.

Today's fighting is the first confrontation near Libya's vital oil terminals. It highlights stakes of the ongoing chaos in Libya, where rival governments, parliaments and militias fight for power.

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