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Cheers and cries of joy ricocheted through the Green Square in Libya’s capital, as rebel forces acquire 95% of the city, becoming a step closer to toppling the 42 year regime of Moammar Gadhafi and widening the course for democracy.

After a series of advances from the rebel forces through the city, the central Green Square – where pro- Gadhafi supporters formerly gathered for months to voice their loyalty - was ultimately seized.

Rejecting the colour that identified with Gaddafi's despised regime, the landmark was subsequently dubbed as “Martyr's Square”, with thousands flooding the streets, celebrating the rebels' success, firing guns into the air, chanting loudly and destroying symbols of Gaddafi.

In a statement, US President Barack Obama said that the situation in Libya had reached a “tipping point” and control of the capital was “slipping from the grasp of a tyrant”.

The US President echoed the stance of many leaders in the world, by demanding that Gadhafi steps down and relinquishes “power once and for all”.

“Tonight, the momentum against the Gadhafi regime has reached a tipping point. Tripoli is slipping from the grasp of a tyrant,” Mr Obama said in the statement released on Sunday. “The Gadhafi regime is showing signs of collapsing. The people of Libya are showing that the universal pursuit of dignity and freedom is far stronger than the iron fist of a dictator.”

He added that the US would maintain a relationship the Transitional National Council (TNC) post conflict, and work with its allies and partners around the world to safeguard the Libyan people and assist in instigating a peaceful shift to democracy.

The Benghazi-based TNC, led by Mustafa Abdul Jalil, is set to assume governance over Libya once Gadhafi’s administration surrenders.

Currently approximately 34 countries, including the UK, the USA, France, Qatar, Italy, Germany, Canada and Turkey, recognize the TNC as the legitimate government in Libya.

Obama called on the rebels “at this pivotal and historic time” to shoulder the leadership essential to guide the country through a transition by respecting the rights of the Libyan people, avoiding civilian casualties, protecting state institutions and pursuing a transition to democracy that is “just and inclusive” for all of the country's people.

However, at a news conference in Tripoli on Sunday, the Libyan government spokesman told reporters that Western governments were to blame for innocent deaths in his country, pointing the finger at US President Barack Obama, UK Prime Minister David Cameron and French President Nicolas Sarkozy.

Government spokesman Moussa Ibrahim said: “What is important now for NATO is for the Libyan government to fall. The human price is irrelevant.”

“Every blood -- every drop of Libyan blood -- shed by these rebels is the responsibility of the western world and especially NATO's countries. So we hold Mr. Obama, Mr. Cameron and Mr. Sarkozy morally responsible for every single unnecessary death that takes place in this country,” he added.

“They have families, they have houses, they have their lives and they wholeheartedly believe that if this city is captured then the blood will run everywhere, so they may as well fight until the end.”

Meanwhile, Mr Gaddafi in an audio speech broadcast Sunday urged his supporters to march in the streets of the capital and “purify it” from “the rats”.

“The west will not protect you. Tripoli will be destroyed,” he said.

Saying that he was in Tripoli, Gaddafi called on his supporters to defend the capital from the rebels and pledged to “emerge victorious” rather than surrender.

“I am with you in Tripoli – together until the ends of the earth. I am giving the order to open the weapons stockpiles. I call on all Libyans to join this fight. Those who are afraid, give your weapons to your mothers or sisters.

“Go out, I am with you until the end. I am in Tripoli. We will win,” the dictator averred.

Spokesperson Ibrahim also declared the regime has “thousands and thousands of fighters” and vowed: “We will fight. We have whole cities on our sides. They are coming en masse to protect Tripoli to join the fight.”

Nevertheless the TNCs' top diplomat in London, Mahmud Nacua, confirmed that opposition forces controlled 95 percent of the city but clashes are still on-going in Tripoli. He vowed Gadhafi would be found, saying “the fighters will turn over every stone to find him” and will ensure he faced justice.

Mr Gadhafi, along with his son- Seif al-Islam (who has already been captured by rebel forces) faces charges of crimes against humanity at the International Criminal Court in the Netherlands; under the grounds of ordering, planning and partaking in illegal strikes on civilians in the primary stage of the vicious crackdown on anti-regime protesters.

The UK Prime Minister also called on Gadhafi to “stop fighting - without conditions” as his regime “is falling apart and in full retreat” and promised unequivocal support for the Libyan people, for an effective transition to a free, democratic and inclusive Libya.

David Cameron insisted that Libya called on NATO forces as  Gadhafi was set to “slaughter his own people,” adding that the  massacre of thousands of innocent people was averted as a  result of employing foreign military in the dictator-led country.

“Six months ago this country took the difficult decision to commit our military to support the people of Libya,” Mr Cameron said.

“I said at the time that this action was necessary, legal and right – and I still believe that today.

“It was necessary Legal, because we secured a Resolution from the United Nations, and have always acted according to that Resolution.

“And right, because the Libyan people deserve to shape their own future, just as the people of Egypt and Tunisia are now doing.”

Mr Cameron said he spoke to Chairman Jalil last week and will continue to keep in touch, with the hope of upholding the importance of respecting human rights, avoiding reprisals, and making sure all parts of Libya can share in the country’s future. Announcing that frozen Libyan assets would soon be released to help the country's rebels establish order, he added that the NATO’s mission to protect civilians would persevere “for as long as it is needed”.

The PM also commended the efforts of British pilots, air staff and ground crew, along with everyone else that have supported the NATO mission and the work of the NTC.

He said that despite it not being the UK’s revolution, the country could hold pride over aiding the transition to democracy.

Mr Cameron warned that despite significant progress, “difficult days” loom as “no transition is ever smooth or easy”.

But he noted that the Libyan people are closer to their “dream of a better future” while the Arab Spring is further away from “oppression and dictatorship”.