The African Union Commission has called on Ethiopia, Eritrea and Egypt to exercise maximum restraint and refrain from actions or statements that could worsen tensions and undermine regional peace and stability.

"The Commission urges the three countries to address their differences through established diplomatic channels and peaceful dialogue," it said in a statement late on Thursday.

On Thursday, Ethiopia ordered the closure of its embassy in Eritrea and declared 10 Eritrean diplomats persona non grata, prompting Asmara to sever all diplomatic ties with its neighbour.

It also declared an Egyptian diplomat persona non grata and ordered him to leave the country within 48 hours, and Cairo responded in kind by declaring an Ethiopian embassy counsellor in Egypt persona non grata and giving him 48 hours to leave.