Baroness Ashton, the EU's high representative for foreign affairs, told a meeting of the UN Human Rights Council in Geneva that the union would impose further restrictions on Libya very soon, noting that violent repression in the north African country "shocks our conscience."
She said the EU sanctions might include "an embargo on equipment which might be used for internal repression."
Hillary Clinton, the US secretary of state, met with her counterparts from Europe and Russia on the sidelines of the UN meeting to discuss fresh measures to weaken Col Gaddafi's regime.
She said she had been seeking a consensus so that "we can better coordinate and organise in meeting the expectations laid down by the Security Council."
Earlier William Hague, the Foreign Secretary, said it was "certainly" time for Col Gaddafi to go, and warned those supporting his efforts to crush protests that there will be a "day of reckoning" for anyone involved in human rights abuses.
Asked if the dictator's days were now numbered, Mr Hague told the BBC: "I certainly hope so. It is certainly time for Gaddafi to go.
"It is important that countries choose their own leaders, but this is an extreme case. His country has risen up against him, terrible abuses are being committed in trying to put down the protests of his own people.
"He is now cut off from the rest of the international community. It is certainly time for him to go."
The situation in Libya remained chaotic today, with opponents of the regime – including many army units which have defected to the rebel side – holding almost all of the east of the country and most of its lucrative oil infrastructure.
Col Gaddafi himself retains control over capital Tripoli and nearby cities, backed by better armed security forces and militiamen.
In the two opposition-held cities closest to Tripoli – Zawiya and Misrata – rebel forces were anticipating a possible attack by pro-regime troops to try to retake them.
The International Criminal Court confirmed today that it has formed a team to collect information about civilian deaths during the current uprising and has been in contact with members of Libya's army.
Europe and the US have been reported to be considering several proposals to undermine the ability of the Libyan government to kill anti-regime protesters, including the imposition of a no-fly zone. However, Sergei Lavrov, Russia's foreign minister, said the idea had was "not mentioned by anyone."
Guido Westerwelle, the German Foreign Minister, though, called for a 60-day freeze on all payments into Libya in order to choke the regime of funds.
The International Criminal Court said it had been in contact Libyan army officers to gather information about civilian deaths during the uprising against Col Gaddafi's regime. Luis Moreno-Ocampo, ICC's Chief Prosecutor. said he hoped to decide within days whether to open a formal investigation that could lead to indictments against those responsible.
"Information suggests that forces loyal to President Moammar Gadhafi are attacking civilians in Libya. This could constitute crimes against humanity and must stop," the Argentinian prosecutor said.
"There will be no impunity for leaders involved in commission of crimes," he said
