The foreign ministers of Saudi Arabia, Egypt, the United Arab Emirates and Bahrain - who since June have been boycotting the Gulf Arab nation of Qatar in part over its warm ties with non-Arab and Shiite Iran - had held talks in the Egyptian capital ahead of the Arab League meeting set for later in the day.
While Tehran has made no secret of its political support for Houthi, it has repeatedly denied rumors of arming the Yemeni Houthi, with Iranian President Rouhani stating that the Houthis' missile launch at Saudi Arabia's capital was a "reaction to aggression", adding that Riyadh's belief in the Islamic Republic being its "enemy" is a "strategic mistake".
Arab foreign ministers gathered in Cairo at Saudi Arabia's request for an extraordinary meeting to discuss alleged "violations" committed by Iran in the region.
They said they planned to "brief" the U.N. Security Council on Iran's destabilizing policies in the region, particularly its support for Shiite rebels in Yemen, with a view to submit at a later stage an anti-Iran Arab resolution.
While not mentioning Iran by name, he said Lebanon condemned all attacks against Arab nations, but blamed exploitable inter-Arab divisions that allowed worldwide and regional powers to promote their interests.
The Arab foreign ministers' final statement referred to Hezbollah as a "terrorist organization", a branding that drew reservations from Lebanon, according to the head of the Arab League, Ahmed Abul Gheit. "Is under the total control of this terrorist party", Sheikh Khalid said.
The draft declaration cites the missile attack as well as the bombing of an oil pipeline in Bahrain this month as examples of Iran's threat to regional security.
His son-in-law and adviser Jared Kushner has reportedly formed a bond with Saudi Crown Prince Mohammed bin Salman.
Saudi Arabia has ratcheted up pressure on Iran, accusing Tehran of trying to expand its influence in Arab countries, often through proxies including the Lebanese Shia Hezbollah group.
Lebanon's foreign minister did not attend today's session, but Beirut's permanent representative was present.
In September, a senior IDF officer noted that the Iran provides some $60 million to $70 million a year to Hamas in the Gaza Strip, plus hundreds of millions of dollars more for militias in Syria and Iraq and Houthi rebels in Yemen fighting pro-government forces backed by a Saudi- led coalition.
Riyadh has been backing military forces opposed to President Bashar Assad, while Iran has supported Assad's regime.