Intense gunbattles are underway in the Libyan town of Sirte, where provisional government fighters say they have narrowed the positions held by supporters of former leader Moammar Gadhafi.

The National Transitional Council fighters said Wednesday they have confined Gadhafi loyalists to a portion of one neighborhood. However, they say they continue to face stiff resistance.

On Tuesday, U.S. Secretary of State Hillary Clinton visited Libya and met with the country's new rulers.

During the trip, she pledged millions of dollars in new aid for educational programs and medical care for wounded fighters. Clinton also said more money will go toward securing stockpiles of weapons from Mr. Gadhafi's rule and destroying chemical weapon stocks.

U.S. officials say American aid to Libya since the conflict began totals $135 million.

Clinton is continuing her trip to the region with a stop in Oman.

The NTC has said capturing Mr. Gadhafi's hometown of Sirte would allow them to declare the country liberated.