Two Bahraini soldiers were killed and several wounded on Monday in a Houthi drone attack inside Saudi Arabia near the border with Yemen, Bahrain's state news agency BNA said.

The Saudi-led military alliance condemned the attack and said it followed other hostile actions by the group, including an attack on a power distribution unit and a police station near the border, said a statement from coalition spokesperson General Turki al-Malki.

BNA, citing a statement from the Bahraini army, said an officer and a soldier were killed.

There was no immediate comment from the Iran-backed Houthi movement. Iran and Saudi Arabia restored relations earlier this year in a move seen as increasing the chances for a peaceful solution to the conflict in Yemen.

The incident represented a major escalation after more than a year of a relative calm in Yemen as peace efforts gain momentum. It could jeopardize talks between Saudi and Houthi officials who have just held another round of negotiations on a potential agreement towards an end to the conflict in Yemen.

"Such repeated hostile and provocative actions are not consistent with the positive efforts that are being made to seek an end to the crisis and reach a comprehensive political solution," the coalition statement said, adding that it reserves the right to respond at the appropriate time and place.

Last week, the Saudi government welcomed what it described as "positive results" from the first direct talks it had with leading Houthi officials over five days in Riyadh.

The U.S. Embassy in Bahrain sent a message of condolence to the families of those killed and said it stood by its long-term ally.

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