The Eighth Army plan was thwarted when a frontal attack by the British 7th Armoured Division was repulsed by an Italian rearguard action and the outflanking New Zealand units became dispersed in the desert.

Despite the importance of Benghazi to the Axis supply system, Rommel abandoned the port to avoid a repeat of the disastrous entrapment suffered by the Italians at the Battle of Beda Fomm in February 1941.

The Desert Air Force (DAF) attacked Axis columns that were crowded on the coast road and short of fuel.

[11] Signals intelligence revealed to the Eighth Army that the Panzerarmee was virtually immobilised by lack of fuel, prompting Montgomery to order a stronger force to move cross-country.

[12] During the eighteen days between the evacuation of Agedabia on 23 November and the beginning of the Battle of El Agheila on 11 December Rommel described disagreements with his political and military superiors and he engaged in fruitless bitter arguments with Hitler, Hermann Göring, the head of the Luftwaffe, General Albert Kesselring the Oberbefehlshaber Süd (OB Süd, commander of German units in the Mediterranean theatre), Ugo Cavallero the Italian chief of staff at Comando Supremo and the governor of Libya, Ettore Bastico.

[15] Although the Agheila position was naturally strong, being surrounded by salt marshes, soft sand or broken ground and a "chain of minefields", restricting the ability of vehicles to manoeuvre.

[16] Rommel judged that he would be able to hold the position only if he received artillery and tank replacements, if the Luftwaffe was strengthened and his fuel and ammunition supplies were restored.

[19] At the end of November, Montgomery planned for the 2nd New Zealand Division with the 4th Light Armoured Brigade under command, to commence a wide outflanking movement on 13 December.

The manoeuvre was to be masked by bombardments and infantry raids on the forward positions of the Panzerarmee, commencing on the night of 11/12 December, to divert attention.

[21] Air operations pushed Axis aircraft from their forward bases and bombers hit Tripoli harbour, other ports and Crete.

Rommel wished to launch his remaining armour at this outflanking force but was prevented by lack of fuel and ordered the withdrawal to continue.

In his diary, Rommel wrote: Late in the morning, a superior enemy force launched an attack on Tactical Group Ariete, which was located south-west of El Agheila, with its right flank resting on the Sebcha Chebira and its left linking up with 90th Light Division.

[26] During the night of 15/16 December, most of the remaining elements of the Panzer Army were able to withdraw towards Nofilia, moving in small fast columns through the gaps in the dispersed New Zealand units, under cover of dark.

[29] Montgomery intended to trap the Axis force by pinning them down with a frontal attack near the coast, while the New Zealand Division circled around Rommel's inland flank to cut the Via Balbia to the west of El Agheila.

[30] The New Zealand Division became dispersed during their encirclement attempt and when the Eighth Army started its frontal attack, Rommel commenced his final withdrawal.

[33] In 1966, I. S. O. Playfair, the British official historian, gave an estimate of 450 Axis prisoners, 25 guns and 18 tanks destroyed from 13 to 17 December.

Buerat was not strongly defended and despite intelligence of the state of the Axis forces, Montgomery paused until 16 January 1943, when the Eighth Army had a 4:1 superiority in infantry and a 7.5:1 advantage in tanks.