With the civilian death toll growing, Secretary of State Hillary Clinton called on Gadhafi to quote "stop the bloodshed."
Gadhafi was accused of genocide by his own international counterparts. The United Nations is now calling for his immediate resignation.
But Gadhafi's son, who spoke publicly Monday, said the country's military is standing by his father and if protestors don't get off the streets, the bloodiest battles will be yet to come.
Demonstrators set fire to a police station in Libya and in response the military unleashed upon protestors, using warplanes to begin an aerial assault of crowds on the ground.
Monday, two pilots refused orders to attack people and instead defected, landing in nearby Malta. Libya's own ambassador at the United Nations is now demanding that Moammar Gadhafi resign.
"He has to leave as soon as possible," said Ibrahim Dabbashi, Libyan Deputy Ambassador to U.N. "He has to stop killing the Libyan people. The people have been patient enough the last 42 years."
But at the Capitol, authorities released images of Gadhafi being cheered on by his supporters over the weekend. On Monday, Gadhafi's son went on television and threatened civil war and mass poverty if the protests did not stop.
"All foreigners will leave tomorrow," said Seif al-Islam Gadhafi, son of Libyan leader Moammar Gadhafi. "All petrol companies will leave, petrol will stop, and from tomorrow there won't be any petrol, there won't be any money, you won't find a piece of bread."
But just as he was speaking, demonstrators were setting fire to other government buildings in Tripoli.
Protests continued throughout the Middle East, from Iran to Yemen. In Bahrain, the king was forced to reschedule hosting a highly anticipated formula one race due to ongoing demonstrations.
On Monday morning British Prime Minister David Cameron visited Egypt, calling the actions in neighboring Libya appalling.
Over 200 people have been killed. Hospital workers said they're now turning schools into makeshift morgues.
The violence in Libya could start affecting gas prices. On Monday many international oil companies suspended their operations in the country due to the unrest. As a result, the price of crude oil jumped more than five dollars, that's the largest single day rise in two years.
Analysts said if the country stops exporting oil, prices at the pump could skyrocket.