TRIPOLI (Reuters) - A defiant Muammar Gaddafi vowed on Tuesday to die in Libya and said he would crush a revolt which has seen eastern regions already break free from his rule. Swathed in brown robes, Gaddafi seethed with anger as he banged the podium outside one of his residences that was heavily damaged in a 1986 US bombing raid that attempted to kill him. Nearby stood a monument of a giant fist crushing a US fighter jet. I am not going to leave this land, I will die here as a martyr, Gaddafi said on state television, refusing to bow to calls from his own diplomats, soldiers and protesters clamouring in the streets for an end to his four decades at the helm. I shall remain here defiant, said Gaddafi who has ruled Libya with a mixture of populism and tight control since taking power in a military coup in 1969. Anti-government protesters were rats and mercenaries, he said, who under Libyan law deserved the death penalty. Gaddafi said he would call the people to cleanse Libya house by house unless protesters surrendered. Gaddafi urged Libyans to take to the streets on Wednesday to show their loyalty to his government. He raised a question, Are we followers of Usama Bin Laden or Aiman ul Zawahiri? Do you want Libya like Pakistan and Afghanistan? Why did you remain silent then when US forces targeted Qaddafi family? We faced US, NATO and UK and we do not know how to lay down arms. All of you who love Muammar Gaddafi, go out the streets, secure the streets, dont be afraid of them ... Chase them, arrest them, hand them over to the security (forces), he said. State television showed what it said was live footage of hundreds of government supporters in Tripolis Green Square waving portraits of Gaddafi and banners supporting the veteran leader. But refugees streaming across the Libyan border into Egypt said Gaddafi was using tanks, warplanes and foreign mercenaries to fight the growing rebellion. Eastern Libya is no longer under Gaddafis control, rebel soldiers in the city of Tobruk told a Reuters correspondent there. Tobruk residents said the city was in the hands of the people and had been for three days. They said smoke rising above the city was from a munitions store bombed by troops loyal to one of Gaddafis sons. There was the occasional explosion. All the eastern regions are out of Gaddafis control ... The people and the army are hand-in-hand here, said the now former army major Hany Saad Marjaa. The White House offered its condolences for the appalling violence in Libya and said the international community had to speak with one voice on the crisis. The UN refugee agency meanwhile urged Libyas neighbours to grant refuge to those fleeing the unrest, which was triggered by decades of repression and popular revolts that toppled leaders in Tunisia and Egypt. On the Libyan side of the border with Egypt, anti-Gaddafi rebels armed with clubs and Kalashnikov rifles welcomed visitors. One man held an upside-down picture of Gaddafi defaced with the words the butcher tyrant, murderer of Libyans, a Reuters correspondent who crossed into Libya reported. Hundreds of Egyptians flowed out of Libya on tractors and trucks, taking with them harrowing tales of state violence and banditry. In the eastern town of Al Bayda, resident Marai Al Mahry told Reuters by telephone that 26 people including his brother Ahmed had been shot dead overnight by Gaddafi loyalists. They shoot you just for walking on the street, he said, sobbing uncontrollably as he appealed for help. Protesters were attacked with tanks and warplanes, he said. The only thing we can do now is not give up, no surrender, no going back. We will die anyways, whether we like it or not. It is clear that they dont care whether we live or not. This is genocide, said Mahry, 42. The revolt in Libya, the third largest oil producer in Africa, has driven oil prices to a 2 1/2 year high above $108 a barrel, and OPEC said it would produce more crude if supplies from member Libya were disrupted. With no end in sight to the crisis, refugees fled to Egypt. Five people died on the street where I live, Mohamed Jalaly, 40, told Reuters at Salum on his way to Cairo from Benghazi. You leave Benghazi and then you have ... nothing but gangs and youths with weapons, he added. The way from Benghazi is extremely dangerous, he said. Libyan guards have withdrawn from their side of the border and Egypts new military rulers, who took power following the overthrow of President Hosni Mubarak on Feb. 11, said the main crossing would be kept open round-the-clock to allow the sick and wounded to enter. Groups of rebels with assault rifles and shotguns waved cheerily at the passing cars on a stretch of desert road, flashing the V-for-victory sign and posing with their guns, a Reuters correspondent there reported. Libyan security forces have cracked down fiercely on demonstrators across the country, with fighting spreading to Tripoli after erupting in Libyas oil-producing east last week. As the fighting has intensified some supporters have abandoned Gaddafi. Tripolis envoy to India, Ali al-Essawi, resigned and told Reuters that African mercenaries had been recruited to help put down protests. World powers have condemned the use of force against protesters. Washington and Europe have demanded an end to the violence and Germanys Foreign Minister Guido Westerwelle said: A ruling family, threatening its people with civil war, has reached the end of the line. Spains Repsol suspended all operations in Libya and sources said operations at cargo ports at Benghazi, Tripoli and Misurata had shut due to the violence. Trade sources said Libyan oil port operations had also been disrupted and others said gas supplies from Libya to Italy had slowed since Late Monday, though Italy said they had not yet been interrupted.. Shell said it was pulling out its expatriate staff from Libya temporarily and a number of states were seeking to evacuate their nationals. Eyewitness reports that military aircraft had fired on protesters in Tripoli. But Gaddafis son Saif al-Islam said the aircraft had been used only to bomb army bases which had defected to the opposition. Condemnation poured in from around the world, including from many of Libyas own top diplomats. Libyas ambassadors to the US, China, India and Malaysia resigned. The deputy ambassador to the UN denounced the attacks as genocide. Libyas diplomats at UN in New York called for international intervention to stop the governments violent action against street demonstrations in their homeland. Deputy Permanent Representative Ibrahim Dabbashi said Libyans had to be protected from genocide, and urged the UN to impose a no-fly zone. Ali Aujali, Libyas most senior diplomat in the US, also criticised the countrys leader. He told the BBC he was not supporting the government killing its people. The embassy in Malaysia condemned the governments actions after being briefly occupied by protesters who smashed a portrait of Gaddafi. The ambassador to India said he had quit because of unacceptable violence against civilians. Ali al-Essawi said he had heard from sources inside the country that the leadership had been using African mercenaries to combat the protests, and this had prompted Libyan troops to join the opposition, Reuters news agency reported. Meanwhile Libyan state TV denied there had been any massacres, dismissing the reports as baseless lies by foreign media. In Jordan, King Abdullah faces unprecedented calls by a mix of Islamists, liberals and traditional supporters for moves towards a constitutional monarchy, Jordanian politicians said on Tuesday. Emboldened by uprisings across the region, these usually divergent voices are grouping around a broad demand for constitutional changes to limit the extensive executive powers of the Hashemite monarchy. Sheikh Hammam Said, head of Jordans Muslim Brotherhood, said voters should have the right to elect their prime minister, an appointment currently made by the king. We are seeking an elected government where people choose their governments, he said, echoing demands to curb the kings sweeping powers to appoint cabinets and Meanwhile, Egypts new military rulers appointed a few ministers who opposed Hosni Mubarak on Tuesday, but exasperated the Muslim Brotherhood and other groups by keeping key portfolios chosen by the deposed leader unchanged. The Islamist Brotherhood, Egypts biggest political organisation, said the new cabinet showed Mubaraks cronies still controlled national politics and that a call for a million man march on Friday would show peoples anger and frustration. About 500 Egyptians protested in the capital on Tuesday demanding that the military install a new government with fresh faces and lift the emergency law in the Arab worlds most populous nation which Mubarak used to impose his iron rule. The public demands the downfall of the government, the protesters chanted at the revolutions landmark Tahrir Square, with banners calling for a government of technocrats. We warn of the dire consequences of defying the will of the workers, the Centre for Trade Unions and Workers Services (CTUWS) said. The centre shows its deep surprise at the governments insistence in continuing the bad reputation of the former political regime, it said in a statement. The military, facing protests over wages and conditions that sprang out of the nations new found post-Mubarak freedom, has effectively banned strikes and industrial action to get the nation back on its feet and to restart the damaged economy. Egypt is planning a stimulus package to spur its economy after it was badly hurt by the political turmoil, Finance Minister Samir Radwan said on Tuesday. He estimated that the political unrest that led to the ousting of Mubarak would cut growth in the financial year to end-June to 4.3 percent from the previous forecast of 6 percent. The goal of the stimulus package is to get the economy on its feet again, he told reporters. Meanwhile, in Bahraini tens of thousands of opposition supporters marched to Pearl Square - the focal point of the week-long protests in central Manama - to press demands for political reform in a country dominated by the Sunni Muslim minority. Led by groups such as Wefaq and Waad, it was the first organised demonstration and followed spontaneous protests by a rising youth movement relying on social media. The protesters want a constitutional monarchy, in contrast to the current system where Bahrainis vote for a parliament that has little power and policy remains the preserve of an elite centred on the al-Khalifa family.