U.S. Secretary of State Hillary Clinton arrived in Cairo Tuesday seeking a partnership with Egypt in its transition to democracy, as she became the highest U.S. official to visit since Hosni Mubarak was toppled.

Clinton held evening talks with her Egyptian counterpart Nabil al-Arabi at the old foreign ministry building hard by Tahrir Square, the epicenter of the 18 days of mass protests that led to Mubarak's overthrow.

Britain called Tuesday for restraint from all sides in Bahrain after its Gulf neighbors sent in hundreds of troops to support its royal family in the face of opposition protests.

The call came after a member of the Bahraini security forces was killed when he was run over by a protester's car in the south of the country on Tuesday.

Bahrain's king declared a three-month state of emergency on Tuesday as Iran strongly condemned a military intervention by Gulf troops to help put down Shiite-led unrest in the Sunni-ruled kingdom.

Thousands of protesters marched to the Saudi embassy chanting slogans against King Hamad and vowing to defend the country from the "occupation" forces, as unrest in the tiny country became a regional diplomatic crisis.

Iran's President Mahmoud Ahmadinejad warned Western powers Tuesday against imposing a no-fly zone or taking other military action in Libya.

Ahmadinejad renewed his condemnation of Libyan leader Moammar Gadhafi's bombardment of opponents in his own country, in an interview with Spanish television in Tehran.

An opposition activist was shot dead in a gunfight with pro-regime loyalists in north Yemen on Tuesday, a security official said.

Naser Musleh Nasm, a member of the main Islamist opposition, was killed in the armed clash with supporters of the ruling General People's Congress in Al-Jawf province, a security official and tribal leaders told Agence France Presse.

The Israeli navy seized a boat carrying weapons apparently destined for militant groups in Gaza, a military spokeswoman told AFP on Tuesday.

The vessel, boarded as it sailed southwards some 200 nautical miles off the Israeli coast, was carrying "various weapons," she said, without saying exactly when it was seized.

Libyan leader Moammar Gadhafi said the rebellion against his rule was a "lost cause", in an interview published on Tuesday, adding that he felt "betrayed" by former ally Prime Minister Silvio Berlusconi.

The rebels "have no hope, it's now a lost cause for them," Gadhafi said in an interview with Italian daily Il Giornale, as his forces made major advances on the ground into formerly rebel-held territory in eastern Libya.

Group of Eight powers have failed to agree on military intervention in Libya, France's Foreign Minister Alain Juppe said Tuesday, after the countries discussed proposals for a no-fly zone there.

"For the moment I have not convinced them," Juppe said on Europe 1 radio, referring to his talks with fellow G8 foreign ministers at a dinner on Monday night.

Military intervention in Bahrain by Gulf States is "unacceptable" and it will complicate the already volatile situation there, Iran's foreign ministry spokesman Ramin Mehmanparast said on Tuesday.

"The presence of foreign forces cannot be acceptable and will make the situation more complicated and difficult," Mehmanparast told his weekly press conference broadcast on state television.

Armed forces rolled Monday into Bahrain from Saudi Arabia and the United Arab Emirates to help restore order in the strategic Gulf kingdom where protesters have shut down the financial center.

Thousands of mostly Shiite protesters occupied Manama's business district, turning the regional banking hub into a ghost town as they pressed their calls for democratic change from the Sunni Muslim monarchy.