Latest tragedy to strike the Arabian Peninsula's poorest country came days ahead of Eid al Fitr as hundreds of people gathered in capital Sanaa to receive cash handouts.
The two Middle East powerhouses had held several rounds of dialogue in Iraq and Oman before reaching the agreement to mend ties on March 10 in China.
More than 300 prisoners scheduled to fly between Sanaa and Aden on Friday, while detainees will also be released in Marib and Mokha, as well as in Riyadh and Abha in neighbouring Saudi Arabia.
Syria's FM Faisal Mekdad arrives in Jeddah and holds talks with his Saudi counterpart — in a first such trip to the Gulf state since the outbreak of Syrian civil war in 2011.
Saturday's deadly drone attack in the country's third largest city of Taez follows clashes in Marib province earlier this week that killed soldiers, military sources said.
Talks in Switzerland began a day after Iran and Saudi Arabia announced a China-brokered deal to re-establish diplomatic ties after years of frayed ties and hostilities, including in Yemen.
The United Nations had appealed for $4.3 billion to deliver aid this year to 21.7 million people going hungry in the war-ravaged country — and urged warring parties to turn a fragile truce into lasting peace.
The government said the assault, which left 10 soldiers dead and several wounded, was aimed at cutting off a key route to the blockaded city of Taiz and undermined peace efforts.
The authorities gave no indication of foul play in the blast that killed at least two people, wounded 120 others and damaged several buildings and stores.
Three people killed in main Sanaa city after rebels shoot down a spy drone of Saudi-led military coalition, Houthi officials say.
Rebels "will consider the request for an extension of the truce, which ends on June 2," says Saba news agency, which is affiliated with the Houthis.
The International Committee of the Red Cross has facilitated the release and repatriation of nearly 100 Yemeni prisoners.
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