Two people were killed and three wounded in an exchange of fire between Saudi security forces in the oil-producing Eastern Province and what the interior ministry on Thursday called gunmen serving a foreign power.

In a statement quoted on the Saudi Press Agency, the ministry said shooting erupted on Wednesday during the funeral of a person killed in what it described as a string of attacks earlier this week on security checkpoints in the province.

In its statement on Thursday, the ministry said two people were killed and six wounded in those incidents.

"These casualties have occurred due to the exchange of gunfire with unknown criminal elements who have infiltrated among citizens, and are firing from residential areas and narrow streets," it said.

The ministry said: "The goal of those who provoke unrest is to achieve dubious aims dictated to them by their foreign masters."     

The references to foreign meddling have been widely read to mean Iran.

In its statement, the ministry said tyres had been burned and roads blocked during the funeral that saw the most recent shootings, and said it was ready to crack down.

"It [the ministry] warns whoever deludes himself about violating order that he will be deterred strongly, and that the security forces in the area are fully authorised to deal with the situation and end these criminal actions." - Reuters