In a televised address from the White House on Thursday, US President Donald Trump said the core objectives of the war in Iran were "nearing completion" and that the regime was no longer a threat.
"They are decimated both militarily and economically and in every other way," he said during a 20-minute speech.
In response, Iran has disrupted maritime navigation which has sent oil prices soaring.
Mr Trump called on allies of the US that do depend on oil coming through the Strait of Hormuz to take action.
"The countries of the world that do receive oil through the Hormuz Straight must take care of that passage," he said.
"They must grab it and cherish it. They could do it easily.Â
"We will be helpful, but they should take the lead in protecting the oil that they so desperately depend on."
Defence analyst Marcus Hellyer, head of research at Strategic Analysis Australia, said a modest military contribution from Canberra in the form of a warship would be unlikely to have any impact on the conflict in the Middle East.
"The worst case is a nuclear war, we do need to find a solution and countries need to pull Israel, the US and Iran back from the brink," he told AAP.
He said Australia didn't have many ships it could send to the region due to previous governments' mismanagement of the defence acquisition process.
"Our cupboard is quite bare," the analyst said.
Opposition Leader Angus Taylor has called for Australia to consider any requests made by the US to send military assets to the Middle East.
Labor has repeatedly insisted no formal request has been made by the US.
Prime Minister Anthony Albanese questioned the need for a prolonged war in an address to the National Press Club on Thursday.
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