A senior State Department official said Tuesday he's sorry for a joking remark he made about Libyan leader Moammar Gadhafi that prompted Libya to threaten diplomatic retaliation unless he apologized.

Chief department spokesman P.J. Crowley said he regretted any offense caused by his response to a reporter's question about Gadhafi's recent call for a holy war against Switzerland. Libya said last week it might take action against American business interests there if a formal apology was not made.

"I understand that my personal comments were perceived as a personal attack," Crowley told reporters. "The comments do not reflect U.S. policy and were not intended to offend. I apologize if they were taken that way. I regret that my comments have become an obstacle to further progress in our bilateral relationship."