Iran Supreme Leader Ayatollah Ali Khamenei has warned Saudi Arabia against the military intervention in Yemen and said their "noses will be rubbed against the ground."

The 75-year-old Iranian leader, who enjoys ultimate political authority in his country, has urged Riyadh to show more restraint in its foreign policies.

In an address to a gathering in Tehran, Khamenei said: "The Saudis will definitely be struck back in this issue and their nose will be rubbed against the ground [they will be defeated]."

"This action [of Saudi Arabia] is not acceptable in the region and I warn that they will certainly lose interests."

The ongoing unrest in Yemen is widely seen as a proxy war between the Shiite-inclined Iran, which has been accused of orchestrating the Houthi rebel militia in Yemen, and the Sunni powerhouse of Saudi Arabia.

Saudi Arabia has been pounding Houthi rebels' targets for the past two weeks in their military campaign, dubbed Operation Decisive Storm.

Elsewhere during a discussion with Turkish President Recep Tayyip Erdogan in the Iranian capital, Khamenei said: "Yemenis should decide the future of their country. Today, the United States and the Zionists are happy with differences among Muslim countries and the solution to these problems is cooperation between the Islamic counties and taking practical and constructive measures."

The Saudi-led operation has been receiving stinging criticism from its regional rival and heavyweight Iran repeatedly. However, Riyadh is determined to carry out their military campaign against the Houthis, who were on an offensive capturing several territories in Yemen.