The US Navy says it intercepted a fishing vessel in waters near Iran that was smuggling “massive” amounts of explosives.

This ship was transiting from Iran along a route in the Gulf of Oman that has been used to traffic weapons to Yemen's Houthi group, reported Reuters.

Releasing a statement on Tuesday, US Navy's Fifth Fleet said its forces found over 70 tons of ammonium perchlorate on the vessel that is generally used to make rocket and missile fuel, as well as explosives.

“This was a massive amount of explosive material, enough to fuel more than a dozen medium-range ballistic missiles depending on the size,” said Vice Admiral Brad Cooper, commander of US Naval Forces Central Command, US 5th Fleet and Combined Maritime Forces.

A Saudi-led military coalition battling the Iran-aligned Houthis in Yemen since 2015 has repeatedly accused Tehran of supplying weapons to the group, but the Islamic Republic denies the accusation.

The Islamic Republic has not commented on the accusation yet.

The Fifth Fleet further noted that four Yemeni crew were onboard the vessel which was also carrying 100 tons of urea fertilizer that is used in agriculture but also for making explosives.

US forces sank the ship on Sunday in the Gulf of Oman as it was a "hazard to navigation for commercial shipping" and its crew were handed over to the Yemen coast guard, it added.

Last December, the Fifth Fleet seized a shipment of rifles and ammunitions from a fishing boat. It announced that the cargo is believed to be sent by the Islamic Republic for the Houthis.