The blast took place in front of a restaurant. Yemeni government-in-exile, led by ousted President Hadi, claimed 5 civilians had been killed and 7 others wounded.
Al-Hazm city is currently under control of Saudi-backed mercenaries.
Local tribal sources believe that the incident came as a result of infighting among various armed groups aligned with the Saudi-led coalition.
Earlier, two people were killed in violent clashes between Saudi-backed and UAE-backed militias in Aden, south Yemen.
