Shiite rebels backed by supporters of former president Ali Abdullah Saleh have taken over Yemen's third largest city of Taiz and its airport.
The Houthi soldiers opposed to Yemen's president, Abd-Rabbu Mansour Hadi, seized large parts of the city which is located between the country's capital Sanaa and the second city of Aden.
The seizure follows a call from the Houthis rebels for a general uprising against forces loyal to Hadi, who has established a base in Aden after fleeing the capital.
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The prime minister said that contingency planning for no-deal had been increased in "recent days".