Yemen's armed Houthi movement and its political allies formed a new government on Monday, the Houthi-run state news agency Saba reported, in what appeared a blow to UN-backed efforts to end 20 months of war in the country. Diplomats had hoped the Houthis would hold off on putting together a cabinet of their loyalists. The Houthis previously said forming a government with their allies did not mean abandoning the UN-sponsored peace process. Making common cause with the party of powerful ex-president Ali Abdullah Saleh, the Iran-allied Houthis previously ruled the parts of Yemen they controlled through a "Supreme Political Council", a body which announced the new government. Rajeh Badi, a spokesman for the legitimate government of President Abdrrabbu Mansour Hadi, said the move showed "a disregard not just for the Yemeni people but also for the international community." "Over a year and a half since the Houthi militia's coup, no one in the international community has recognized the entities they have formed," Badi added. There was no immediate comment from the United Nations. Yemeni President Abdrabbu Mansour Hadi said the Shiite rebels and their allies dashed hopes for peace after they unveiled a new government in areas under their control. Hadi said that Monday's formation by the Iran-backed rebels of a government of national salvation showed their determination to "spread chaos and destruction" and "destroys any chance of dialogue and peace". Speaking through a spokesman from Yemen's second city Aden, Hadi called on the international community to "condemn this move and hold the militia responsible for the collapse of peace efforts." — Agencies