Some 6.7 million people in Yemen are classified in phase 4 on an international scale of food security, with phase 5 constituting a famine.
Officials said it did not appear that the Iran-backed Houthis would come to the negotiating table under the current circumstances and there needed to be more military pressure on the group.
Khoukha and the nearby city of Hodeidah are controlled by Iran-allied Houthi fighters who in 2014 overran Yemen’s capital Sanaa and forced the Saudi-backed government of President Abd-Rabbu Mansour Hadi to flee into exile.
The US will limit arms sales, but continue assisting Saudi Arabia in the Yemen campaign, despite concerns that Saudi Arabia is misusing its power.
The report to the UNSC also said a military coalition led by Saudi Arabia had violated humanitarian law by bombing a civilian home in Al-Mahala village.
The UN report said the coalition was to blame for 60% of child deaths and injuries in the conflict last year, killing 510 and wounding 667.
The UN has said the economy is close to collapse and many areas are at risk of famine, a word the agency uses sparingly and only when certain criteria have been met.
A two-third majority vote by the 193-member UN General Assembly can suspend a state from the Geneva-based UN Human Rights Council.