Assailants detonated a vehicle bomb outside the Yemeni Finance Ministry offices in the southern city of Aden on Wednesday, killing at least two people, hospital officials and residents said.
The number of the casualties is expected to rise as an exchange of gunfire in the area has hampered the transfer of those wounded to hospitals.
The magnitude of the explosion also shattered windows of adjacent houses.
No group has yet claimed responsibility for the attack.
Three of the wounded are said to be in critical conditions.
Turkey issues detention warrants for 360 Gulen-linked suspects
President Recep Tayyip Erdogan's government claims Gulen and his network orchestrated an attempted coup past year . There is an operation to detain them and it is held in 49 districts of the country.
This is the third deadly terrorist attack by ISIS in Aden since November.
The port city of Aden is considered Yemen's temporary capital, where the Saudi-backed government has based itself since 2015.
The mission has expanded to include operations against jihadist groups, both IS and Al-Qaeda, which have exploited chaos to gain footholds in government-held southern Yemen. Much of the Arabian Peninsula country's infrastructure, including hospitals, schools and factories, has been reduced to rubble due to the war.
The Yemen war has killed more than 8,650 people, the majority civilians, and pushed the country to the brink of starvation.
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