Saudi Arabia has intercepted a rocket fired by rebel Houthi fighters in Yemen, who declared a “new chapter” in its confrontation with the kingdom.

The Volcano 2-H ballistic missiles was aimed at the al-Yamma royal palace in Riyadh, but was stopped by Saudi’s air defences.

Reporters heard a blast and saw a plume of smoke rising above the Saudi capital near the palace, where King Salman chairs weekly government meetings and hosts foreign dignitaries.

It was the second time in as many months that a rebel projectile had reached as far inside the kingdom as Riyadh, and while audacious, neither caused any real damage.

In a televised address, rebel leader Abdul-Malik al-Houthi said the range of missiles in the Houthi arsenal was being extended. "Our long hand will reach other places, God willing," he said.