A car exploded near a military hospital in the Yemeni capital, Sana'a, Monday, wounding at least 20 people.
The Islamic State's Yemeni branch claimed responsibility for the attack on Twitter, but that claim could not be independently verified.
In a new sign that three months of war in Yemen is ratcheting up, the country's military spokesman said its forces launched a Scud missile at a military base in Saudi Arabia. The strike was said to be in retaliation for the airstrikes being carried out by a Saudi-led alliance against the rebel Houthis.
The Houthis took over Sana'a last year, forcing Yemen's internationally recognized president, Abdu Rabu Mansour Hadi, to flee to Saudi Arabia.
The Islamic State group is starting to make its presence felt more and more inside Yemen, where the Houthis are coming up against numerous militant groups and tribal militias, all jockeying for power.