Australia has backed Israel's right to self-defence after a series of strikes on Iranian nuclear operations and military leaders that have sparked fears of a major conflict in the Middle East.
Iran and Israel have targeted each other with missile and air strikes after the latter launched its biggest-ever air offensive against its long-time foe.
Foreign Minister Penny Wong said the situation in the region was a "very perilous, risky" situation.
"Israel has a right to self defence," she told ABC's Insiders program on Sunday.
"We know that (Iran's) nuclear program poses a threat to international peace and obviously to Israel."
"(The question is) what do we do about it and how do we respond in a way that lessens the risk of more civilians particularly in the region being brought into this conflict?"
The UK has begun moving some of its military assets to the Middle East following threats from Tehran that nations helping to defend Israel could also be targeted.
The US has already used its systems to help Israel shoot down ballistic missiles fired by Iran.
Senator Wong confirmed she had spoken with her Iranian counterpart and urged his country to exercise restraint while returning to dialogue.
"Continuing to escalate this has consequences for all peoples of the region," she said.
"That is a position that so many countries in the world are putting to not only the Iranians but also to the Israelis."
Australian National University maritime security expert Jennifer Parker said the nation needed to pay close attention to Iran's nuclear capability and take it seriously.
"We need to be very careful that we are supporting the avoidance of nuclear breakout and new countries in the globe getting nuclear capability," she said.
"If Iran was allowed to achieve a nuclear weapon, Saudi Arabia would be next, and if that happens, there would be concern in our region about whether the US nuclear extended deterrence still stands."
Iran is also considering closing the Strait of Hormuz - the only maritime entry point into the Persian Gulf - which would send oil prices skyrocketing.
Ms Parker said Australia would feel the economic impact if the strait was closed as the nation heavily relied on imports for its fuel consumption.
The Zionist Federation of Australia welcomed the government's "unequivocal support" for Israel's right to self-defence and recognition of the threat posed by Iran's nuclear program.
Prime Minister Anthony Albanese urged Australians in the region to leave amid the escalating conflict.
He landed in the US on Saturday, local time, on his way to the G7 summit in Canada on Sunday.
Mr Albanese is expected to meet with a range of global leaders, including US president Donald Trump, who had been working with Iran on a nuclear deal.
The US was notified about the Israeli strikes in advance but Washington officials have been quick to point out it played no part in the attacks, warning Iran not to target its personnel or interests.
Australia on Wednesday announced sanctions would be imposed on two Israeli government ministers over their stance on illegal West Bank settlements, a move done in conjunction with other nations including Canada and the UK.
But it has widened the nation's rift with the US over Israel after Washington officials condemned the measure.
Senator Wong said the decision to break away from the US and sanction the ministers wasn't taken lightly.
Asked if Australia had weakened its influence with both Israel and the US on a two-state solution as a result, the foreign minister said extremist settler violence wasn't consistent with the aspiration of Palestinian statehood.
"We're so far from that (two-state solution) right now, but that is why the international community is trying to work together to build this pathway," she said.
