United Nations, Feb 7 (IANS): The UN Security Council has expressed grave concern after the Shia Houthis announced that they were taking over Yemen and dissolving parliament.

The Council called "in the strongest terms" on all parties, in particular the Houthis, to abide by the Gulf Cooperation Council (GCC) initiative, the National Dialogue Conference outcomes, and the Peace and National Partnership Agreements which provide for a Yemeni-lead democratic transition, Xinhua reported Saturday.

The UN Security Council said it was ready to take "further steps", which could mean new sanctions, if Yemen's Shia Houthi group does not immediately return to the UN-led negotiations on a democratic transition.

It also called for the "immediate release" of President Abd-Rabbu Mansour Hadi, Prime Minister Khaled Bahah and members of the cabinet from house arrest.

The Shiite Houthi group Friday announced the formation of a presidential council to take over power from the presidency, a move that further deepens the chaos after Yemen's president and premier submitted resignations last month.

Yemen's political parties have been holding consultations brokered by UN envoy Jamal Benomar for more than two weeks, aiming to reach a consensus

Despite the formation of a new government in November 2014 aimed at ending a period of political turbulence and bringing about a full transition towards democracy, the impoverished Arab country continues to be plagued by violence and mass political demonstrations.