Iran on Thursday accused the Saudi-led coalition battling Shiite rebels in Yemen of hitting its embassy in the capital, Sanaa, in an overnight airstrike, but there were no visible signs of damage on the building. The accusation comes amid a dangerous rise in tensions between Iran and Saudi Arabia in recent days, following the kingdom’s execution of a Shiite cleric and attacks on Saudi diplomatic posts in the Islamic Republic.

Analysts have feared the dispute could boil over into the proxy wars between the two Mideast rivals in Yemen and in Syria. Meanwhile, Saudi Arabia’s eastern Shiite heartland prepared to hold a funeral service Thursday night to honor the executed Shiite cleric, Nimr al-Nimr. That could spark further unrest, as witnesses in eastern Saudi towns have reported hearing gunfire overnight and armored personnel carriers have been seen driving through neighborhood streets. FULL REPORT