The mission had been set to reopen tomorrow after a two-day shutdown as part of global fears of a terrorist attack but the Britain's Foreign and Commonwealth Office (FCO) confirmed it would now remain shut for the festival, ending later in the week.
"Due to continuing security concerns the British embassy in Yemen will remain closed until the end of Eid," a spokesperson said here today.
The FCO also continues to advice against all travel to the region and has urged British nationals to leave the country.
The French foreign ministry also extended the closure of its embassy in Yemen for two additional days after keeping its doors shut on Sunday and Monday.
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Unlike the US, the UK kept its embassies in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, United Arab Emirates and Iraq open over the weekend, but advised staff to "exercise extra vigilance".
It has been suggested that Al Qaeda messages reportedly intercepted by the US were between senior figures talking about a plot against an embassy.
The US said 19 of its embassies in North Africa and the Middle East would remain closed until Saturday.
Its diplomat missions in Algiers, Kabul and Baghdad are among those which will reopen on Monday.