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Yemen's president on Wednesday called on Iran to stop spying in his country, warning that the Shiite-led nation would "pay the price" if it continues meddling.

His stern warning followed claims in state media that an Iranian spy operation had been uncovered.

"We will embarrass them in front of the world," President Abed Rabbo Mansour Hadi said on state TV.

He said he would make public his information linking Iran to spying in Yemen.

"I will take the necessary steps, and a heavy price will be paid if you continue with this manner," he said, addressing Iran.

A security official said that an Iranian revolutionary guard officer was arrested for allegedly running a spy network in Yemen, and several members of the network were also arrested.