Moammar Gadhafi's supporters fought rebel forces holding the two cities closest to the capital and his warplanes bombed an ammunition depot in east Libya Monday, as international pressure ramped up on the embattled Libyan leader.
The U.S. has moved naval and air forces closes to Libya, while saying all options are still on the table, including a "no-fly zone" over the North African nation to protect its citizens from their ruler.
France has said it will send aid to the opposition-controlled parts of Libya, while the European Union became the latest organization to impose sanctions on the Gadhafi regime.
"Gadhafi has lost the legitimacy to govern, and it is time for him to go without further violence or delay," U.S. Secretary of State Hillary Rodham Clinton said. "No option is off the table. That of course includes a no-fly zone."
British Prime Minister David Cameron also said: "We do not in any way rule out the use of military assets" to deal with Gadhafi's regime.
But Gadhafi laughed off questions from a journalist about whether he would step down.
"My people love me. They would die for me," he told ABC News.
U.S. Ambassador to the United Nations Susan Rice called Gadhafi "delusional" in response.
Earlier on Monday, several hundred demonstrators were reportedly marching in the Libyan capital of Tripoli, chanting slogans against Gadhafi.
The protest involving about 300 people formed after the funeral of someone who had been killed in an attack by pro-Gadhafi militants.
The capital is one of Gadhafi's few remaining strongholds. Rebel groups have established control over large swaths of the east, including much of the nation's oil infrastructure.
But Gadhafi's elite security forces are better armed and supplied than the country's military -- some of which has defected to the opposition.
Gadhafi has long kept the military undersupplied, worrying that they could pose a challenge to his rule.
There have been widespread reports of armed militia loyal to Gadhafi patrolling the streets and waging violence against demonstrators during clashes over the past two weeks.
In recent days gunmen have further clamped down on the capital, setting up checkpoints and patrols in an attempt to muzzle protests.
Hundreds, if not thousands, have died in the uprising.
CTV's Janis Mackey Frayer said tanks and barricades are being set up around the city to prevent rebel groups from entering.
Many military members -- both officers and enlisted members -- have defected to the rebels and an active recruitment drive is underway to encourage them to do so, Mackey Frayer said.
"They're calling on ex-soldiers to come back and fight for them, fight for what they call the 'new Libya,'" she said.
"They're gathering their weapons and they're planning to march on Tripoli if that's what's needed to topple Gadhafi from power."
Meanwhile, the first international aid shipments are expected to arrive in Libya on Monday, offering some relief to the deeply divided nation.
French officials announced Monday the country was sending two planeloads of aid that would include doctors, nurses, medicine and medical equipment to Libya.
The planes would be destined for "liberated territories" in the east of the country and would represent "the beginning of a massive operation of humanitarian support," said Prime Minister Francois Fillon.
The French planes were to land in Benghazi.
The aid comes as the U.S., U.K., Canada and the UN Security Council all announced sanctions for Libya over the weekend.
In Tripoli, where Gadhafi is believed to be holed up, there were attempts to restore some semblance of normalcy on Monday.
Stores in the downtown reopened and many residents lined up at banks seeking the $400 per family payout Gadhafi was offering to citizens, in a bid to strengthen support.
The promised cash comes amid reports that food prices had skyrocketed in the capital, with rice hitting the equivalent of $40 for a five-kilogram bag.
Some schools reopened Monday, but only for half a day.
With files from The Associated Press
