Ethiopian police say they have seized thousands of rounds of ammunition sent by Eritrea to a violent armed rebel group, stoking fears of renewed armed conflict.

Eritrea has denied the allegation and accused Ethiopia of "floating false flags to justify the war that it has been itching to unleash for two long years".

It comes at a volatile moment for the relationship between the Horn of Africa neighbours, which share a fractious and violent history.

Hopes of tentative peace, forged during a 2020-22 civil war in northern Ethiopia, have of late given way to a war of words over control of the Red Sea. This latest claim appears to be a sign of further escalation.

On Wednesday, Ethiopian police said in a Facebook statement that they had seized "more than 56,000 rounds of ammunition" in the Amhara region intended to "arm the Fano" rebels, and had arrested two suspects.