Yemen’s Iran-backed rebels on Monday dismissed the US move to designate them a terrorist organisation in the final days of the Trump administration while a leading aid agency warned such a label would deal another “devastating blow” to the impoverished and war-torn nation.

The planned designation, announced by US Secretary of State Mike Pompeo late Sunday, would take effect a day before President-elect Joe Biden is inaugurated January 20. It was not clear whether Biden would overturn the decision.