The embattled regime of Moammar Gadhafi is arming civilian supporters to set up checkpoints and roving patrols around the Libyan capital to control movement and quash dissent, residents said Saturday.

The reports came a day after protesters demanding Gadhafi's ouster came under a hail of bullets when pro-regime militiamen opened fire to stop the first significant anti-government marches in days in the Libyan capital.

The Libyan leader, speaking from the ramparts of a historic Tripoli fort, told supporters to prepare to defend the nation as he faced the biggest challenge to his 42-year rule, with rebels having seized control of about half of the country's coastline.

"At the suitable time, we will open the arms depot so all Libyans and tribes become armed, so that Libya becomes red with fire," Gadhafi said.

The international community stepped up its response to the bloodshed, while Americans and other foreigners were evacuated from the chaos roiling the North African nation.

The U.N. Security Council planned to meet Saturday for a second day to consider an arms embargo against the Libyan government and a travel ban and asset freeze against Gadhafi, his relatives and key members of his government.

President Barack Obama signed an executive order Friday freezing assets held by Gadhafi and four of his children in the United States. The Treasury Department said the sanctions against Gadhafi, three of his sons and a daughter also apply to the Libyan government.

In Tripoli, most residents remained in their homes Saturday, terrified of bands of armed men running checkpoints and patrolling the city.

A 40-year-old business owner said he had seen Gadhafi supporters enter one of the regime's Revolutionary Committee headquarters Saturday and leave with arms.

He said the regime is offering a car and money to any supporters bringing three people with them to join the effort.

"Someone from the old revolutionary committees will go with them so they'll be four," the witness said when reached by telephone from Cairo. "They'll arm them to drive around the city and terrorize people."

Other residents reported seeing trucks full of civilians with automatic rifles patrolling their neighborhoods. Many of the men are young, even teenagers, and wear green arm bands or cloths on their heads to show their affiliation to the regime, residents said. All spoke on condition of anonymity for fear of reprisals.

Most shops were closed and long lines formed at bakeries of people venturing from their homes for supplies.

In the Souq al-Jomaa neighborhood, piles of ashes stood in front of a burned-out police station. Graffitti on the walls read, "Down, Down with Gadhafi." Elsewhere, shattered glass and rocks littered the streets.

A law school graduate walking to his house in the Fashloum area said he had seen many people shot dead by snipers in recent days.

"People are panicked, they are terrified. Few leave their houses. When it gets dark, you can't walk in the streets because anybody who walks is subject to be shot to death," he said.

He said Gadhafi's use of force against protesters had turned him against the regime.

"We Libyans cannot hear that there were other Libyans killed and remain silent," he said. "Now everything he says is a lie."

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Hubbard reported from Cairo.