The violent protest and persistent clashes in the south with al-Qaeda forces showed that nearly a year and a half after a new government took office, Yemen is still struggling for stability.
The Shiite protesters were demanding the release of political detainees .
The official said they fired at guards while trying to storm intelligence headquarters in Sanaa.
He said some of the detainees were arrested for smuggling weapons and drugs. He spoke on condition of anonymity according to regulations.
Saleh stepped down last year after months of protests.
The prosecutor's office said the 17 were released for lack of evidence.
In another part of the country, a military official said an airstrike Sunday, believed to be a US drone attack, killed three suspected al-Qaeda militants in the eastern province of al-Jawf, bordering Saudi Arabia.
The official said two missiles were fired at two cars carrying the militants in the al-Mahashma area in al-Jawf, a militant hotbed.
In the southern province of Hadramawt, one soldier was killed and three others injured in an ambush by al-Qaeda militants today, a military official said.
He said the army, backed by warplanes, pressed its operation against al-Qaida in Hadramawt, killing two militants, bringing to nine the number of fighters killed since the start of the offensive on Wednesday.
He said 15 suspected militants were arrested while four soldiers, including an officer, were killed in the fighting. Both officials spoke on condition of anonymity according to military rules.
Washington considers the Yemen branch, also known as the al-Qaeda in the Arabian Peninsula, as one of the world's most dangerous terror groups.
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