The Libyan government has recalled some of its diplomats from Switzerland and demanded Swiss companies shutter their operations in the Middle East nation, The Daily Telegraph reported Wednesday.
Relations between Libya and Switzerland became strained when Gadhafi's youngest son, Hannibal, 32, and his wife Aline, who is nine months pregnant, were arrested in Switzerland for allegedly assaulting two of their staff members with a belt and coat hanger, the British newspaper said.
Among other things, Tripoli has also reduced flights between the countries and stopped processing visa requests from Swiss citizens.
Amid the row, Swiss Foreign Minister Micheline Calmy-Rey has advised Swiss citizens not to travel to Libya after two Swiss nationals were detained there.
Hannibal and Aline Gadhafi were arrested last Wednesday after an incident in a Geneva hotel. He was released on bail two days later. His wife, who is nine months pregnant, was taken to a hospital during police questioning.
The couple deny they assaulted their staff.