Western leaders have been discussing ways to increase pressure on Libyan leader Muammar Gaddafi to stop his slaughter of people rebelling against him and to persuade him to stand down.
In Washington, the Pentagon has announced it is repositioning naval and airforce deployments around Libya as forces loyal to Colonel Gaddafi mass near the Tunisian border.
Residents fear pro-Gaddafi forces are preparing an attack to regain control of Nalut, 60 kilometres from the Tunisian border, from protesters seeking an end to Gaddafi's rule.
United States Secretary of State Hillary Clinton has stepped up her call for Libyan leader Muammar Gaddafi to go immediately.
In a speech to the United Nations Human Rights Council in Geneva, Mrs Clinton denounced Colonel Gaddafi's use of what she described as mercenaries and thugs to suppress the Libyan people.
She urged the international community to co-ordinate its efforts to help remove him.
"Gaddafi and those around him must be held accountable for these acts, which violate international legal obligations and common decency," she said. "It is time for Gaddafi to go, now, without further violence or delay."
Mrs Clinton said the Libyan protesters were "braving the dictator's bullets and putting their lives on the line to enjoy the freedoms that are the birthright of every man, woman and child on Earth".
She also said that although US naval vessels are being repositioned near Libya, no military action is pending.
EU approves sanctions
The European Union has approved a package of sanctions banning the sale of military equipment from Libya and freezing the assets of Colonel Gaddafi and his immediate family.
The US, Britain and Switzerland have already agreed to similar sanctions.
British Prime Minister David Cameron says his government is considering a plan to establish a no-fly zone over Libya.
Gaddafi responds
Earlier, Colonel Gaddafi told the BBC he was loved by all his people and that they would die to protect him. He also denied there have been any protests in Tripoli.
Interviewed at a Tripoli seafront cafe, Colonel Gaddafi laughed at the suggestion he would leave Libya and said he felt betrayed by leaders who had urged him to quit.
He accused Western countries of abandoning Libya, saying they had no morals and wanted to colonise the country, and challenged those who have accused him of having money abroad to produce evidence.
He said he would "put two fingers in their eye".
US ambassador to the UN, Susan Rice, said Colonel Gaddafi was delusional if he believed he had never used force and that all his people loved him.
He is facing a massive challenge to his 41-year rule, with protesters in control of towns in the east.
Fighting reported in third city
Meanwhile, reports from Libya say intense fighting is taking place between pro- and anti-government forces around the city of Misurata.
The country's third-largest city is 200 kilometres from Tripoli, Colonel Gaddafi's stronghold.
A local doctor who witnessed the violence says helicopters belonging to the government attacked a radio station run by protesters.
