A strike hit shops at a market at the Mawiya junction in Yemen's Taiz province, killing seven people and injuring 40 others, including children, on Sunday, the Houthi-run health ministry said.
Footage from Al Masirah television showed destroyed vehicles, a wrecked motorbike and collapsed buildings at the market. The broadcaster also showed injured people arriving at hospital and receiving treatment.
Yemen's internationally recognised government later said its forces had hit a Houthi military camp and vehicles at the same junction. Three military sources within the government told Reuters that the Houthis had recently set up a military camp near the market.