Fighting broke out on the outskirts of Yemen's port city of Hudaida on Friday, residents said, a day after a ceasefire agreement was reached by the warring parties.

One resident told Reuters he could hear the sound of missiles and automatic gunfire in the direction of the eastern 7th July suburb of the Houthi-held city, on whose outskirts Yemeni forces backed by a Saudi-led coalition have massed.

The Iranian-aligned Houthi movement and the Saudi-backed government had agreed at the end of UN-sponsored peace talks to cease fighting in the Red Sea city ahead of a withdrawal of armed forces.