Russian Federation has questioned the expert's report, with Russia's UN Ambassador Vassily Nebenzia referring to its findings as "uncorroborated conclusions and evidence which requires verification".
Nine votes and no vetoes from the five permanent council members - Britain, France, China, Russia and the United States - are required to adopt resolutions at the Security Council.
Haley suggested that in light of the Security Council's failure to hold Iran responsible for its refusal to observe the boycott of the Houthis, that the US, together with allies, could conceivably take action against Iran to punish the Islamic Republic.
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The report by a United Nations panel of experts in January concluded that Iran was in violation after determining that missiles fired by the Houthis at Saudi Arabia previous year were made in Iran.
The report submitted by the United Nations panel of experts, which is affiliated with the sanctions committee in Yemen, was welcomed by the coalition as it provided evidence on the involvement of the Iranian regime in supporting terrorist organizations, including the Houthi militia.
In the vote on the UK-drafted text, 11 members of the council were in favor, Russian Federation and Bolivia were against, and China and Kazakhstan abstained.
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Russia's veto of a British-drafted resolution renewing sanctions on Yemen is a setback for the U.S. as it pushes the United Nations Security Council to take a stronger stance towards Iran over its role in regional conflicts and missile tests.
Russia's ambassador to the UN, Vassily Nebenzia, said the wording in the British draft would have had "destabilising ramifications" if adopted, and warned about the effect it would have on Yemen and the region as a whole.
"Desperate attempt UNSC by US&UK to cover up complicity in 3 years of Saudi & Emirati war crimes in Yemen failed". Making his statements on Twitter, Gargash reaffirmed the correct decision taken by Saudi Arabia to intervene in Yemen.
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"Iran has spiritual and emotional ties with Houthi Ansarullah movement and politically support them to help Yemen secure its sovereignty", he added, asked about Tehran's relations with the Houthis.