The Yemeni government and the STC said on Monday that they agreed on a ceasefire to start talks to implement a peace deal, the Saudi ambassador to Yemen said.

The government, based in the southern port of Aden, and the STC are nominal allies in the Saudi-led coalition, which has been at war against the Iran-aligned Houthis that have controlled the capital since 2014.

However, the Southern Transitional Council (STC) declared self rule in April, and the two sides have been fighting in the south.

Tensions escalated over the weekend after the STC seized control of Socotra, a Yemeni island in the Arabian Sea, deposing its governor and driving out forces of the government.

The two sides have now agreed to a cease-fire in Abyan province along the coast east of Aden, as well as de-escalation of tensions in Socotra and other regions, and the start of talks, a statement from the Saudi-led coalition said.