Prime Minister Sir Keir Starmer has said the UK is working with allies on a "viable, collective plan" to reopen the Strait of Hormuz.
It comes after President Trump urged Britain and other countries to send warships to the Gulf to help protect the shipping channel, which is vital for global oil supplies.
Sir Keir told a news conference the UK already had minehunters in the region but there was no decision yet on what action would be taken.
The strait has been effectively closed to tankers since the conflict with Iran broke out, leading to surging oil prices.
Iran has threatened to attack any ships it considers linked to the US, while there is also a risk from sea mines.
The PM said: "Ultimately, we have to reopen the Strait of Hormuz to ensure stability on the market.
"That is not a simple task.
"So we're working with all of our allies, including our European partners, to bring together a viable, collective plan that can restore the freedom of navigation in the region as quickly as possible and ease economic impact."
Sir Keir said he had also been discussing the issue with the US and Gulf countries, and that any action had to be agreed "by as many partners as possible".
Unlike consumers who use gas and electricity for heating and hot water, whose prices are capped until the end of June, those using oil are not regulated by Ofgem.
In an interview with the Financial Times, Trump warned the Nato military alliance faced a "very bad" future if it members failed to help.
He also reiterated his calls for allies to help protect the Strait of Hormuz, saying: "It's only appropriate that people who are the beneficiaries of the strait will help to make sure that nothing bad happens there."
