Yemen's Houthi-run health ministry said seven people were killed and 40 injured, including children, in a strike on shops at a market in the Mawiya junction in Taiz province on Sunday.
Later, Yemen's internationally recognized government said its forces had targeted a Houthi military camp and vehicles at the same junction.
Three military sources within the Yemeni government told Reuters that the Houthis had recently established a military camp near the market.