Britain announced that it had foiled a plan by Libyan leader Moammar Gadhafi to move Libyan banknotes worth 1.4 billion dollars (1 billion Euros) out of Britain.

"The Chancellor of the Exchequer (finance minister) intervened to block the departure of 1.4 billion in notes destined for Libya," British Prime Minister David Cameron said on Monday.

Iranian opposition leaders Mir Hossein Mousavi and Mehdi Karroubi and their wives have been arrested and put in a Tehran jail, their websites said Monday in reports swiftly denied by a judicial official.

The two had been under house arrest after judiciary chief Ayatollah Sadeq Larijani said earlier this month they had committed "treason" and MPs demanded they be hanged.

"All my people love me," Libyan strongman Moammar Gadhafi insisted Monday, ignoring mounting global pressure to step down and perhaps head into exile after four decades at the helm of his country.

"They love me. All my people with me. They love me all. They would die to protect me," the veteran Libyan leader said speaking in halting English in an interview with Western media shown on the BBC's world news website.

The United States on Monday told defiant Libyan leader Moammar Gadhafi he must "go now," repositioned forces near Libya and raised the prospect of exile for its foe, as it cranked up pressure on his fragile regime.

Washington further stiffened its rhetoric and said it was talking to Libyan opposition groups, apparently seeking to further destabilize Gadhafi after an uprising against his decades-long rule that has killed more than 1,000 people.

Fresh clashes erupted between Omani police and protesters on Monday, a day after police killed at least one as the turmoil rocking the Arab world reached the normally calm Gulf sultanate.

Hundreds of demonstrators stormed a police station in the key industrial area of Sohar, northwest of the capital Muscat, and police responded by firing tear gas.

U.S. Secretary of State Hillary Clinton urged the international community Monday to work together on further steps to end the crisis in Libya, adding that Washington was keeping all options on the table.

"We all need to work together on further steps to hold the Gadhafi government accountable, provide humanitarian assistance to those in need and support the Libyan people as they pursue a transition to democracy," she told the U.N. Human Rights Council.

The European Union on Monday agreed to slap an asset freeze and travel ban on Libyan leader Moammar Gadhafi and 25 members of his family and inner circle, the EU's Hungarian presidency said.

"The EU measures not only implement the resolution of the United Nations Security Council of February 26 but in addition impose autonomous sanctions", said Tamas Fellegi, national development minister of Hungary, which currently holds the rotating EU presidency.

Egypt on Monday slapped a ban on ousted president Hosni Mubarak and his family traveling abroad, and also imposed a freeze on their assets, judicial officials said.

Besides Mubarak, who resigned on February 11 following weeks of protests, the decision also applied for his wife Suzanne, his two sons Ala and Gamal, and their wives, according to the same source.

Iranian President Mahmoud Ahmadinejad said on Monday that weapons manufactured and delivered to "dictators" by the United States were killing protesters in uprisings around the Arab world.

The hardliner said that the United States and its allies must be blamed for imposing dictatorships on regional countries now in the grip of deadly revolts.

Israel's defense minister said Monday his country must look beyond the risks that might arise from the changes sweeping the Mideast and seek opportunities to move peacemaking forward — including possible peace talks with Syria.

Defense Minister Ehud Barak told Israel Radio that Syria appears to be signaling it might be willing to reach an accord.