An official at the International Committee of the Red Cross (ICRC) said at least 36 were killed and 185 were wounded.
A source who was present with Prime Minister Ahmed bin Dagher and a number of ministers at the presidential palace in Aden on Tuesday, told Asharq Al-Awsat that government forces respected the ceasefire while members of the Transitional Council had benefited from the situation to escalate.
Southern separatists took control of most of the city of Aden, Yemen, on Tuesday after a United Arab Emirates fighter jet bombed the area. Hadi has remained there while his government operates out of Aden.
Recently, southern separatists gave Hadi a week-long ultimatum to replace the government, which they accused of corruption and incompetence.
The fighting in Aden first erupted on Sunday, when a deadline issued by the separatists for the government to resign expired.
He urged a Saudi-led military coalition backing Hadi to intervene in its defence. Southern Yemen was united with Northern Yemen in 1990.
In March 2015, the UAE joined a Saudi-led coalition against Iran-backed Shiite Houthis who seized much of Yemen, pushing the internationally recognized government of President Abd-Rabbu Mansour Hadi out of the capital of Sanaa in 2014.
Fighting began after the Southern Transitional Council, the main group of the Southern Resistance Forces, ordered Hadi to fire his prime minister and his Cabinet.
We also call for dialogue among all parties in Aden to reach a political solution State Department spokeswoman Heather Nauert said. "The Yemeni people are already facing a dire humanitarian crisis".
Almost three years on, the coalition has failed to achieve its stated aim of restoring the "legitimate" government of Hadi. "Additional divisions and violence within Yemen will only increase their suffering".
Hadi, who is based in Saudi Arabia, renewed his call for a cease-fire, saying "rebellion and weapons won't achieve peace or build a state".
The UAE-backed anti-terror campaign has dislodged Al Qaeda militants from several villages in Abyan and in the neighbouring Shabwa province, with more than 50 of them arrested and imprisoned in Aden.
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