Britain on Sunday urged Iran to "do the right thing" and seize the opportunity to come in from the cold by de-escalating tensions with the United States.
Foreign Secretary Dominic Raab said a war was in no one's interest as he described Iran's assassinated top general Qasem Soleimani as a "regional menace".
Britain is preparing to deploy the Royal Navy to escort UK-flagged commercial shipping through the Strait of Hormuz.
The US on Friday killed Soleimani in a drone strike near Baghdad international airport that raised fears of a new war in the Middle East.
"The US will take their own operational judgement call but they've got the right of self defence," Raab told Sky News television. Raab said he spoke to Iraq's President Barham Saleh on Saturday and Prime Minister Adel Abdel Mahdi on Sunday.
"We want to see de-escalation, we're going to do everything we can to protect the UK diplomatic missions and we're going about that business," he said.
Raab said there needed to be "a route through this which allows Iran to come in from the international cold -- and that opportunity is there for them if they do the right thing".
Raab also confirmed that he has a meeting with US Secretary of State Mike Pompeo next week.
Meanwhile the Ministry of Defence said late Saturday that the frigate HMS Montrose and HMS Defender, a destroyer, "will resume accompaniments of UK-flagged commercial vessels" in the strait.
Defence Secretary Ben Wallace said: "I have instructed preparations for HMS Montrose and HMS Defender to return to accompanying duties of Red Ensign shipping. The government will take all necessary steps to protect our ships and citizens at this time."
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