Shelling near the Liberian capital Monrovia yesterday provoked panic among residents, who feared that rebels were about to storm the city. Tens of thousands of people fled their workplaces for home and dragged their children out of school as excitable government troops tore through the streets waving weapons.
The attack by a shadowy rebel group on an area just 15 miles from Monrovia was the closest to the capital to date, and further evidence of the looming threat to President Charles Taylor's power. Liberia's defence minister, Daniel Chea, said the area under assault was Arthington, the source of Monrovia's water supply.
At the weekend, rebels seized control of Liberia's second city, Gbarnga. Mr Taylor ordered the arrest of two of his frontline commanders for "conniving with rebels" to capture the city.
Mr Taylor declared a state of emergency in February - compounding the fears of much of the population about his manic and violent rule - as members of Liberians United for Reconciliation and Democracy (LURD) intensified their attacks.
LURD is principally made up of rebels who lost the ethnically-driven seven-year civil war to Mr Taylor in 1996. Recently, it has received support from neighbouring Guinea and pro-government militias in Sierra Leone.
Attacks by LURD in recent weeks have underlined the government's vulnerability.
Mr Taylor's problems have been compounded by a UN arms embargo, and the regime in Monrovia says it is now severely short of weapons.