Britain initially included a condemnation of Iran in its draft resolution to extend sanctions and the mandate for the panel of experts to continue their work - but dropped it because of Russian opposition.
The UN Security Council resolution, in which Iran has been named as an accomplice to the missile strikes of Yemeni rebels against Saudi Arabia, has been blocked by Russian Federation, the news agencies reported.
After the veto, the UNSC unanimously adopted a Russian-drafted measure to extended for one year the sanctions regime against Yemen. The draft was vetoed by Bolivia and Russian Federation, while China and Kazakhstan abstained from the vote. Negotiations were continuing on Sunday.
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 a year ago were made in Iran.
A United Nations resolution condemning Iran for violating an arms sanction against Yemen was vetoed by Russian Federation. An earlier draft condemning Iran was watered down after Moscow sought revisions.
But the British draft still expressed "particular concern" at the experts' report that "weapons of Iranian origin were introduced into Yemen after the imposition of the targeted arms embargo, and that the Islamic Republic of Iran is in non-compliance" with the 2015 arms embargo.
Khoshroo added that Iran rejects the United States false claims that Iran handed over weapons to Yemen, emphasizing that those claims are aimed at helping the aggressors.
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"We don't have any illusions with regard to Iran's policy towards Israel, Iran's role in the region. and also what they do in terms of constructing ballistic missiles", the diplomat said.
The text, strongly supported by the United States, won 11 favourable votes at the 15-member Security Council but was blocked by Russia's veto.
Kuwait's UN Ambassador Mansour Al-Otaiba, the current council president, told reporters Saturday that "We are still working on the text, but the intention is to adopt it Monday morning".
The Houthi movement has been defending Yemen against a bloody Saudi-led military campaign, which was launched in 2015 with the help of the U.S. and the United Kingdom to reinstall the country's former Riyadh-friendly government.
More than 10,000 people have died in fighting in Yemen that began as a domestic conflict after Houthi rebels took control of the capital Sanaa.
A proxy war is playing out in Yemen between Iran and United States ally Saudi Arabia. In his words, Iran has to take responsibility for its actions.
An alarming 17 million people in Yemen - 60 percent of the total population - are in need of food aid, of whom seven million are on the brink of starvation because of the conflict, according to the United Nations.