"Fifteen to 16 per cent of crude oil and 25 to 30 per cent of refined oil destined for Australia transits through the Straits of Hormuz. So it is a potential threat to our economy.
"Australia will defend our interests wherever they may be under threat,we will always work closely with our international allies and partners and we are steadfast as a regional partner."
Global commodity trading has been rocked in recent months after a series of Iranian attacks on international merchant vessels and the seizure of a British tanker in the Strait of Hormuz,a narrow waterway in the Gulf of Persia through which almost a fifth of the world's oil passes.
US Secretary of State Mike Pompeo formally requested Australia join the effort to combat Iran's"unprovoked attacks"during bilateral talks in Sydney earlier this month.