Washington: US President Barack Obama vowed Tuesday not to let Daesh build a base in Libya, saying the United States would take action where there was a “clear target”.

“We are working with our other coalition partners to make sure that, as we see opportunities to prevent [Daesh] from digging in in Libya, we take them,” Obama said.

“We will continue to take actions where we got a clear operation and a clear target in mind.”

The terror group has established a base with thousands of fighters in the coastal city of Sirte.

The hometown of late dictator Muammar Gaddafi, the city is a strategic port near oil fields that could provide a lucrative source of income.

“The tragedy of Libya over the last several years is Libya has a relatively small population and a lot of oil wealth, and could be really successful,” said Obama.

Since rebels and Western air power toppled Gaddafi’s regime in 2011, the country has effectively lacked a government.

In the chaos a disparate group of foreign fighters, homegrown militiamen, tribes and remnants of the Libyan Islamic Fighting Group have coalesced around the Daesh banner and gained a foothold.

Until now, US involvement in Libya has been limited to isolated air strikes and the deployment of US special forces, who are building ties with local armed groups and providing intelligence.

In November, an American F-16 fighter jet struck the eastern town of Derna, killing Abu Nabil — also known as Wissam Najm Abd Zayd Al Zubaydi — the local Daesh leader.

Obama has asked key advisors to draw up options for ratcheting up the fight against Daesh, including in Libya.