Yemen convicts rebels, Iran denies ship seizure

SANAA (Reuters) - A Yemeni court sentenced to death four men involved in a Shi'ite rebellion in its northern provinces bordering Saudi Arabia on Tuesday, while Iran denied a Yemeni claim to have seized a ship with arms for the rebels.

On Monday, Yemen said it had impounded a vessel carrying weapons destined for the rebels of the Zaidi Shi'ite sect and detained its Iranian crew at the Red Sea port of Medi, in Haja province bordering the area of conflict.

Iran's Arabic language television channel Al-Alam reported "informed Iranian sources" saying on Tuesday that no Iranian vessel delivering weapons to the rebels was stopped, and describing the story as a "media fabrication."

Yemen's embassy in Washington said security officials were questioning the ship's five Iranian crew members.

Sanaa has suggested an Iranian hand behind the rebels, often termed Houthis after their clan and religious leaders. Government officials have said Iranian media backs the rebels and President Ali Abdullah Saleh said Iranian religious figures provide funding.

Shi'ite power Iran and Shi'ite allies such as Hezbollah in Lebanon and cleric Moqtada al-Sadr in Iraq have called on Sanaa to bring the fighting to an end through negotiations.

The Houthis first took up arms against Saleh's rule in 2004, citing political, economic and religious marginalisation by the Saudi- and Western-backed government.

But the conflict intensified in August when the army unleashed Operation Scorched Earth. Aid groups, who have been given limited access to the northern provinces, say up to 150,000 people have fled their homes since 2004.

The court on Tuesday delivered a death sentence to four of 16 men on trial. Eleven were jailed for up to 15 years, while one was released for already having served out his sentence.

It was the third trial of men who fought government troops for around a month last year at Bani Husheish, 30 km (19 miles) north of the capital Sanaa. Twelve others were sentenced to death in the earlier trials.

On Monday a court opened proceedings in absentia against Yahya al-Houthi, the brother of the rebels' leader, who is now based in Germany.

Veteran ruler Saleh also faces a separatist movement in the south and top oil exporter Saudi Arabia fears the instability will help al Qaeda launch more attacks there.

Witnesses said hundreds of people took to the streets in the southern provinces of Abyan, Lahej and Dalea to demand the release of protesters detained during clashes with security forces in recent months, as well as journalists held over their coverage.

They carried the flag of the former South Yemen, an independent state that united with North Yemen under Saleh's rule in 1990.

(Reporting by Mohamed Sudam; Writing by Andrew Hammond; Editing by Diana Abdallah)