The Gulf Co-operation Council – made up of representatives from Saudi Arabia, the United Arab Emirates, Bahrain, Oman, Qatar and Kuwait – also issued a statement condemning the attack.

"This attack represents a dangerous escalation and an unacceptable threat to the security of the Kingdom of Saudi Arabia, its territorial integrity, and its vital installations, as well as a flagrant violation of the principles of international law," secretary general Jasem Mohamed Albudaiwi.

This week, a lightning advance in Yemen has also seen Houthi militants seize control of much of the country's coastline, sources say.

The group said it had control of the Bab al-Mandab Strait, the gateway to the Red Sea and the Suez Canal, though it said maritime navigation is "safe for all companies except for Saudi vessels".

The Yemeni Armed Forces have since struck back. On Friday, spokesman Majid al-Nuzaili said they had targeted Houthi positions in and around the city of Mokha, adding that they had destroyed vehicles and weapons and killed a number of Houthi fighters.

The strategic coastal city on the Red Sea is situated about 80km (50 miles) north of the Bab al-Mandab Strait. The Houthis seized control of Mokha on Thursday. Their attack drove many people to flee to Aden, where Yemen's internationally recognised Presidential Leadership Council and government are based.

Local sources also reported that government forces carried out air strikes targeting Houthi forces in Taiz governorate, which is along the Red Sea coast, and Ibb governorate, which neighbours Taiz.

The developments have squeezed both sides of the Arabian Peninsula, pushing crude oil prices to over $100 a barrel for the first time since July.

Fears over inflation have risen with the spike in energy prices, further pushing up government borrowing costs.