BENGHAZI, Libya - A senior Libyan opposition official said Thursday a blast in their bastion Benghazi Wednesday was conducted by the ring loyal to Libyan leader Muammar Gaddafi and three suspects in the case have been arrested.

The blast damaged several cars outside the Tibesti Hotel which was used for important news conference in downtown Benghazi at about 7 pm (1700 GMT) on Wednesday. There was no casualty in the incident.

The explosion was caused by some grenades thrown by suspects related to Gaddafi to terrorize the people, said Abdel Hafeedh Ghoga, spokesman of the rebel's National Transitional Council (NTC) . But details about the explosives and the suspects were not available.

"The main aim of such acts was to scare us and choice of the location which was the heart of foreign missions, journalists and NTC core members was to threaten the people," Ghoga told a press conference. "The NTC denounces such terrorist acts. We do not think it will divide us, on the contrary, it will unite us."

Security authorities are chasing down the other suspects responsible for the "terrorist attack," said Ghoga, adding that the security measures have been tightened in vital locations such as court houses, hotels, residential areas and main streets.