The cabinet was formed yesterday shortly before the UN Security Council slapped sanctions against influential former president Ali Abdullah Saleh and two rebel commanders for threatening peace.
In apparent retaliation today, Saleh's General People's Congress party sacked from its leadership Yemeni President Abdrabuh Mansur Hadi, following accusations he solicited the sanctions.
Yemen has been dogged by instability since an Arab Spring-inspired uprising forced Saleh from power in February 2012, and the Shiite Huthi rebels and Al-Qaeda have sought to step into the power vacuum.
The turmoil has raised fears that the Arabian Peninsula nation, which neighbours oil-flush Saudi Arabia and lies on the key shipping route from the Suez Canal to the Gulf, may become a failed state.
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Al-Qaeda also said it had tried to kill the US ambassador to Yemen, Matthew Tueller, but the two bombs were detected "minutes before their detonation."
The devices were planted on Thursday outside the house of President Abdrabuh Mansur Hadi, the media arm of Al-Qaeda's Yemen branch said in a statement on Twitter.
Washington, which sees Hadi as a key ally in the fight against Al-Qaeda, welcomed the launch of the new 36-member cabinet.
"This multi-party cabinet must represent the strength of Yemeni unity over individual and partisan interests that may seek to derail the goals of a nation," US National Security Council spokeswoman Bernadette Meehan said.
The new government was formed as part of a UN-brokered peace deal under which the Huthis are supposed to withdraw from the capital Sanaa, which they seized control of in September.
Though the Huthis, who are also known as Ansarullah, are not directly represented in the new government, six of its members are considered close to the insurgents.
Under the accord, representatives of the rebels and their rivals, the Sunni Al-Islah (Reform) Islamic party, mandated Hadi to form a government and committed to support it.
In the wake of the new agreement, Benomar warned in an interview with AFP that without the rapid formation of a government, tensions between Shiites and Sunnis were likely to increase, sinking the country deeper into crisis.