It said 69 people had been killed over the past four days there. Syria's conflict, which started as largely peaceful protests against Assad's government but later descended into civil war, has killed more than 70,000 people so far, according to the United Nations.
The Observatory reported that 10 days of clashes between residents of the eastern village of Masrab and members of the al-Qaida-affiliated Jabhat al-Nusra, or Nusra Front, left 37 people dead including foreign fighters from Saudi Arabia and Tunisia. It said the fighting began after a diesel tanker owner complained to Nusra Front members that villagers had taken his truck. Three members of the group went into the village to mediate, but were shot dead, according to the Observatory.
During the fighting, government forces dropped weapons and ammunition to the villagers, the Observatory said.
Both activist groups, the Observatory and the LCC, also reported fighting Saturday in other areas, including Aleppo and Idlib in the north, Deir el-Zour to the east and Daraa in the south.
SANA said a shell fell outside a sports club in the northern city of Aleppo, Syria's largest and once commercial center, killing two children.
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