The explosion happened in the car park of the Tibesty hotel, which is used as a base by foreign officials visiting the provisional rebel government, known as the National Transitional Council.

Some western journalists also use the hotel.

However, rebel spokesman Jalal al Gallal confirmed that nobody was killed or injured in the car bomb.

"It's a cowardly act," he said, adding that rebels assume elements of Colonel Gaddafi's regime planted the device.

Rebel forces closed off the area in Benghazi as firefighters put out the fire which had spread to three other cars.

A crowd gathered at the scene, shouting "Libya is free".

The blast comes as a United Nations panel accused Libyan government forces of committing crimes against humanity and war crimes.

A report by three UN-appointed experts, who spoke to people on both sides of the uprising, also said opposition forces had committed "some acts which could constitute war crimes".

The study is part of a UN drive to conduct transparent and exhaustive investigations and bring those responsible for abuses to justice. Source