The Saudi-led coalition and Yemen's foreign ministry denied Iran's accusation that Saudi warplanes had hit its embassy in the Yemeni capital of Sanaa.

Iran on Thursday said the warplanes had attacked its embassy in Yemen's capital on Wednesday night, an accusation that exacerbated tension between the major Shiite and Sunni powers in the region.

"The coalition command confirmed that these (Iranian) allegations are false and void, stressing that it does not carry out any operations in the vicinity of the embassy or near it," a statement on the state Saudi news agency SPA said late on Thursday.

"The coalition command urged that all diplomatic missions in Sana'a should not provide an opportunity for militias to use diplomatic missions' buildings in any military action."

Residents and witnesses in Sanaa had also told Reuters there was no damage to the embassy building.

Yemen's foreign ministry also denied the embassy building had been targeted, according to the Saudi-allied, government-run state news agency, sabanew.net.

The official foreign ministry source cited on sabanew.net said responsibility for the protection of diplomatic missions in Sanaa lay with the Houthi militia, who are in control of Sanaa, and their allies, forces loyal to former president Ali Abdullah Saleh.

A growing diplomatic dispute between Riyadh and Teheran, triggered by Saudi's execution of a prominent Shiite cleric, has damaged the outlook for any resolution to the conflict in Yemen, where a coalition led by Saudi Arabia has been fighting the Shiite, Iran-allied Houthi movement.